DAX - Every Bull deserves some rest. Price should correct lower
Actually it should have started the correction already according to my expectations. For the last three days I've been waiting for it. In fact, what has the Dax been doing? Nothing! It is stuck at very important resistence level.
Given the overbought stance of Slow Stoch on the daily chart, and also the slight negative divergence in MACD seen on the Heiken Ashi chart, I doubt Dax has enough power to break above this important descending resistence line right now. Also yesterday we had a very important pin bar on the daily chart.
If the bull wants to stay healthy, it has to have some pause in the run, meaning the price should come off these highs a bit. If I am righ and the correction happens from here, it can come as low as 9450-9500 (Maybe to 9400).
Let's watch it today. In case you wanna trade on this idea I highly recommend to do it via Put options rather than outright shorts, as the trade in this case is a contra against the trend.
Given the overbought stance of Slow Stoch on the daily chart, and also the slight negative divergence in MACD seen on the Heiken Ashi chart, I doubt Dax has enough power to break above this important descending resistence line right now. Also yesterday we had a very important pin bar on the daily chart.
If the bull wants to stay healthy, it has to have some pause in the run, meaning the price should come off these highs a bit. If I am righ and the correction happens from here, it can come as low as 9450-9500 (Maybe to 9400).
Let's watch it today. In case you wanna trade on this idea I highly recommend to do it via Put options rather than outright shorts, as the trade in this case is a contra against the trend.