DAX is breaking the bullish parallel channel. This trend formation has been building up more than 30 months. What does it mean?
We have already a confirmation from 3D chart. Now the market is fighting with EMA 200, but in my opinion we will break it too. RSI is bearish and MACD too.
There is a potential of pull-back to edge of channel, but in this point I expect the bearish move. DAX now seems bearish.
This is a short term trade, I expect we can reach bottom from 2018 at the value 11 700- 11 730. That will be our first target. The price could move on to big long term trendline (white) where I expect a bounce upwards. I think there will be a reaction at previous bottom upwards, but from midterm I guess we will test the white trendline.
Short term trade:
SELL ZONE: 12 050 - 11 900
TARGETS: 1. 11 760 - 11 700
2. along the blue area (white trendline) 11 300 - 11 200
SL: 12 160
If there is a pull-back sign, we will trade close manually and go back to the position at the edge of channel.
We have already a confirmation from 3D chart. Now the market is fighting with EMA 200, but in my opinion we will break it too. RSI is bearish and MACD too.
There is a potential of pull-back to edge of channel, but in this point I expect the bearish move. DAX now seems bearish.
This is a short term trade, I expect we can reach bottom from 2018 at the value 11 700- 11 730. That will be our first target. The price could move on to big long term trendline (white) where I expect a bounce upwards. I think there will be a reaction at previous bottom upwards, but from midterm I guess we will test the white trendline.
Short term trade:
SELL ZONE: 12 050 - 11 900
TARGETS: 1. 11 760 - 11 700
2. along the blue area (white trendline) 11 300 - 11 200
SL: 12 160
If there is a pull-back sign, we will trade close manually and go back to the position at the edge of channel.
Trade closed: stop reached
Trade active
Feel free to short. We have bounce from green trendline and from black short term trendline. Targets are set higher.Trade closed: target reached
1st target reached.Note
We are on the way to reach 2nd Target with much more profit. At this trendline we could see big retrace
Trade closed: target reached
Target 2 - 11 227 has been reached. Congratulate!
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.