DAX Futures: Potential Short Setup for the Upcoming Week A potential trade setup for the upcoming week on DAX Futures presents an opportunity on the short side.
Analyzing the price action, we observe a bearish impulse wave that started at 23,504 and dropped to 22,263, forming a clear five-wave structure. The subsequent three-wave correction suggests a temporary retracement rather than a trend reversal, implying that a new bearish leg could follow.
The expected downward move has two key targets:
First target: 21,872
Second target: 21,400
The bearish outlook remains valid as long as price does not break above 23,504.
Entry Strategy
Our short position will be triggered once the price falls below 22,874, confirming a breakdown under the EMA 5 and EMA 10.
Entry: Below 22,874
Stop Loss: 23,248
Target 1: 21,872 (R/R = 2.60)
Target 2: 21,400 (R/R = 6.40)
This trade setup offers a strong risk-reward ratio, aligning with the broader bearish structure. If price invalidates the setup by moving above 23,504, we will reassess the trade idea accordingly.
