2025-04-09 - priceactiontds - daily update - dax

24
Good Evening and I hope you are well.

comment: Cleanest breakout retest of the big bull trend line from 2024-08 one could ask for. I highly doubt bulls want to buy this above 21000 tomorrow but these moves are so unlikely that anything can happen. Only rough guesses from me here. I will only look for shorts.

current market cycle: trading range more likely than continuation of the bear trend

key levels: 19000 - 22000 yeah. no typo.

bull case: Bulls wettest dreams came true today but this week the market took those profits away quickly afterwards and right now I have no reason to believe that it’s more likely we will continue higher than down again. Ask yourself, if you are a bull and made 10%+ today, will you bet on making 15 or locking in those sweet profits?

Invalidation is below 21000.

bear case: Bear trend line is valid until broken and I doubt bears will let that happen. Too much uncertainty and risk for the markets right now. Bears need to quickly trade down below 21000 tomorrow and by then I think bulls will be in give up mode again. We could range some first but currently the markets are moved by tweets from orange face and they move 10%+ up and down. Wildest of times and you just have to take the momentum trades. Above 22000 I am absolutely wrong about this and market is completely neutral again. Best for bears would be to keep it below 21900.

Invalidation is above 22000.

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: Not writing anything about this. You either got lucky having longs when the tweet came or not. Otherwise selling 20000 before US open was a decent trade.

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