DE40 Sell a break setup.GER40 - Intraday - We look to Sell a break of 15947 (stop at 15994)
Trades with a bearish descending triangle formation.
A break of yesterdays low would confirm bearish momentum.
Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible.
A break of bespoke support at 15950, and the move lower is already underway.
Our profit targets will be 15822 and 15802
Resistance: 16000 / 16050 / 16100
Support: 15950 / 15900 / 15800
De40signals
DAX short-term profit-taking leading to 16400Last week DAX gave the most optimal buy entry on the bottom (Higher Lows trend-line) of the long-term Channel Up as I presented on my most recent analysis:
The price hit 15840 on a strong rebound, the strongest 2 days of the year. Yesterday the price started to pull-back but shouldn't be alarming as the very same -1.30% correction took place on October 18, during the last rally wave and turned out to be just profit taking. The index traded sideways for a week and later went on a 1 month rally extension towards the 1.236 Fibonacci extension.
That extension is currently a little over 16600 and if it takes place, it would mean the break to the upside of the August Channel Up. For the time being, it is more sensible to initially target 16400 and then re-evaluate.
Notice how the 1D MACD is currently forming a Bullish Cross, which DAX typically forms at the start of its rallies.
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