• 526 days Will The ECB Continue To Hike Rates?
  • 526 days Forbes: Aramco Remains Largest Company In The Middle East
  • 528 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 927 days Could Crypto Overtake Traditional Investment?
  • 932 days Americans Still Quitting Jobs At Record Pace
  • 934 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 937 days Is The Dollar Too Strong?
  • 937 days Big Tech Disappoints Investors on Earnings Calls
  • 938 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 940 days China Is Quietly Trying To Distance Itself From Russia
  • 940 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 944 days Crypto Investors Won Big In 2021
  • 944 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 945 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 948 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 948 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 951 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 952 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 952 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 954 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

DAX: Long Setup Watch List

Weekly time frame:

  • The Dax has declined from the April high almost 13% reaching the 0.382 retracement of the rally from the October 2014 low
  • If the weekly Hammer candlestick is confirmed tomorrow, then odds should favour a countertrend rebound
  • The immediate hurdle is located at the 27 wma and horizontal resistance at 11165
  • Above the 27 wma there is white space until the 10 wma = 11482

DAX Weekly Chart
Larger Image


Daily time frame:

  • It stands out that the decline from the April high could have unfolded a Leading Diagonal
  • If the Leading Diagonal is the correct pattern we would already know that for the time being the April high will remain a Top but it is common to Leading Diagonals a sharp countertrend rebound that could reach the 0.618 retracement. Hence we could establish as a potential target box for the assumed wave (B / 2) rebound the range 11603 (50 dma) - 11920 (first lower high)
  • Obviously there is plenty of overhead resistance. The first step needed is to close the gap at 11196.50 then reclaim the 20 dma = 11344

DAX Daily Chart
Larger Image

  • Daily oscillators are displaying a positive divergence of both the RSI and the Stochastic (Positive sign). Going forward if the scenario of the Leading Diagonal is correct the RSI must breach its trend line resistance and reclaim the 50 line and the MACD has to trigger a bullish signal cross

DAX Daily Momentum Chart
Larger Image


60 minute time frame:

  • There is a potential Double Bottom with a measured target at 11432.40
  • Obviously if the Double Bottom pans out the scenario of sharp rebound following the completed Leading Diagonal would be on the right track

DAX 60-Minute Chart
Larger Image

Conclusion: The risk/reward is appealing. Lets see if tomorrow price gives an entry long opportunity.

 

Back to homepage

Leave a comment

Leave a comment