DAX30 - Short Term Correction
I have published a short idea earlier today which has played out great and allowed me to book in some profits.
It appears that the move might have exhausted itself and is due for a corrective move up.
Reasons:
ABCD pattern is developing and will complete at approx 10277 level. Price is buckling already.
Bullish divergence between price action and RSI.
Price did not manage to aggressively break out out of a shallower (blue) downward channel and has instead reached it lower boundary.
Looks like we might see a correction. Arrows are not forecasts of end points of correction. I am not sure how many late sellers we have got overhead keen to enter the short side of the market. So wait and see.
If correction ensues, it may offer an opportunity to add to or to re-enter a short trade. Which is more of my plan.
This is not a trade recommendation, because it is against a prevailing bearish trend, but a caution to book in some profits (if you haven't already) and perhaps for those of a braver heart - this may present an opportunity for long scalp.
It appears that the move might have exhausted itself and is due for a corrective move up.
Reasons:
ABCD pattern is developing and will complete at approx 10277 level. Price is buckling already.
Bullish divergence between price action and RSI.
Price did not manage to aggressively break out out of a shallower (blue) downward channel and has instead reached it lower boundary.
Looks like we might see a correction. Arrows are not forecasts of end points of correction. I am not sure how many late sellers we have got overhead keen to enter the short side of the market. So wait and see.
If correction ensues, it may offer an opportunity to add to or to re-enter a short trade. Which is more of my plan.
This is not a trade recommendation, because it is against a prevailing bearish trend, but a caution to book in some profits (if you haven't already) and perhaps for those of a braver heart - this may present an opportunity for long scalp.
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