2025-04-07 - priceactiontds - daily update - dax
Good Evening and I hope you are well.
comment: Medium term, max bullish. Short term neutral and long term, no fucking clue. Market got to the bull trend line from the covid lows in 3 weeks, which is as insane and unlikely as everything I have ever witness in these markets. Today could have been the low for weeks or months. Markets usually retest prices and so could 19000 get a retest but since we also printed 20976, it’s hard to imagine for now. My best guess for now is to stay inside the given range which does not help anyone at all, trading this. 4h 20ema is the ema to break for bulls and until then I lean bearish above 20000 and bullish below 19500.
current market cycle: strong bear trend but could transition into a trading range with the start of today
key levels: 19000 - 21000
bull case: Bulls will likely get tested again tomorrow when bears try to sell this again, they have to stay above 19500 and go sideways. I highly doubt we get above 21000 again but any news, fake or not, could pump this again. Mean reversion is likely the name of the game for quite some time.
Invalidation is below 19000.
bear case: Bears got more than they could ever dreamed of and they had to be quick to take profits today. The bounce was high enough that I doubt we can get below 19300 again so bears have to wait for pullbacks and short higher. This selling is/was as climactic and unsustainable as everything ever, so do not expect this to continue. 19000 is most likely a place where the legends of this industry buy with both hands.
Invalidation is above 21000.
short term: Neutral.
medium-long term from 2024-03-16: Will update this over the weekend. Bear targets are met. I can most likely see this going sideways for months or years now.
current swing trade: None
trade of the day: If you did not lose money today, you did good.