Germany30
DAX - GOOD TO BUY ON DIPSShorting till 0.764 fib level. This area is where consolidation occurs - as shown by the circles on the chart.
Overall trend is still bullish as long as the key pyschological support 10,000 holds. Thus why I am hedging by buying GER30 futures. Stop loss on buy positions 10,179 and 10,000.
Possible LONG positions on the daily DAX.We have two possible long positions on the INDEX:DAX .
1. If price touches the first blue area, check if there is divergence on either MACD or stoch . At the moment we can see MACD diverging from the price. If step 1 is fulfilled , continue.
2. If step is 1 fulfilled, we want to see either a double bottom or w/m pattern forming on 4H or 1H . Will demonstrate those patterns when the time comes. If step 2 is fulfilled , continue.
3. TP/SL will be set when necessary price action takes place in those areas. We will always wait for pullback no matter what. No pullback, no trade . If step 3 is fulfilled , continue.
4. Long when PRICE makes higher high . If it doesn't and instead makes lower low , abort this potential LONG and look for the next blue area.
Possible reversal near following dates: 15 des, 19 des, 24 des, 11,des
DAX - intermediate top in or just A-B-C correction?After the never ending rally finally peaked, dax had a vicious decline yesterday. Volatility was very high, almost 700 points intraday range.
The big question now is - is a more tradeable intermediate top in or not? In my opinion, the answer is yes, but we will not have confirmation until the market breaks down into an impulsive decline (5 waves). The strenght of the move yesterday points to a 3rd wave, which is why I think after the 4th wave bounce is in, the market will resume the decline and take out the lows. On the other hand, if the current bounce heads higher and overlaps the 1/A level at 11.075, that would put a dent on the more immediate downside potential.
So short term, I think the bounce could go a bit higher, ideally to around 10.950-11.000. The 50% retrace is also there (10970ish). At that point I would start looking for turn potential and the closer we get to the overlap at 11.075, the more confident I would be in building a short position.
Interesting enough, the strong decline lines up very well with the long term projection done by MCM, which points to more weakness in the next 2 weeks.
mcm-ct.com
Good luck out there!
Resume of downtrend - 2nd partAs previously warned, once the 1st TL was broken the 2nd one comes up fast.
Down trend looks back, but this is still a chop zone, so risk management must be paramount. Choppy 4th waves can chop a lot of accounts.
GL to your trades!
