Two months ago was a very good time to short the DAX.
- Broke a historical diagonal trend line. (seen in LOG)
- TD indicator: monthly Red 2 below a Red 1.
What could make this trade even better would be a break of the 50ma (orange). At that point, I would assume that the price moves down to the ray at ~10200. That would be rough 1000 point move to the downside; unless you're shorting it. What would be the most optimal setup for entering this trade, would be another shorting setup on the weekly time-frame and then the daily.
A possible daily short setup would be a rejection at the price of the 50ma. For weekly, we should have a TD sequential Red 2 below a Red 1 and remain below the 200ma (blue).
I remain neutral because the current environment does not give strong technical signals one way or the other. Except for the monthly chart. I am only analyzing the technical patterns of DAX. Once I know more about the fundamentals of Germany's economy, I could make a more holistic assumption of where the price will move.
- Broke a historical diagonal trend line. (seen in LOG)
- TD indicator: monthly Red 2 below a Red 1.
What could make this trade even better would be a break of the 50ma (orange). At that point, I would assume that the price moves down to the ray at ~10200. That would be rough 1000 point move to the downside; unless you're shorting it. What would be the most optimal setup for entering this trade, would be another shorting setup on the weekly time-frame and then the daily.
A possible daily short setup would be a rejection at the price of the 50ma. For weekly, we should have a TD sequential Red 2 below a Red 1 and remain below the 200ma (blue).
I remain neutral because the current environment does not give strong technical signals one way or the other. Except for the monthly chart. I am only analyzing the technical patterns of DAX. Once I know more about the fundamentals of Germany's economy, I could make a more holistic assumption of where the price will move.
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When this idea was created price was at 11376. Here was my technical assumption, "I would assume that the price moves down to the ray at ~10200. That would be rough 1000 point move to the downside;"
The target price was reached during the following month of December.
The target price was reached during the following month of December.
Joe Baus, bausbenchmarks.com