Trade of the week DAX

Trade of the week -DAX rejected from an important resistance

 

DAX  has reached the top of a long-term channel and an important horizontal resistance 13250 level. We are seeing a rejection at the beginning of this trading week which could lead to a pullback into 12620 level. It is close to 100 extension from the 10253 bottom where we will see some profit-taking.

 

On a daily chart, we can see that the pair is testing the 13150-13300 zone which is a strong confluence of upside resistance. Based on this you can place a short trade entry with a stop loss above the 13250 level targeting 12600 level and even trailing the profit further downside in case of a break below this level. ARMAT trading system is indicating a potential 200 points of profit.

 

 

We have used the combination of the top-down trading analysis to get these key levels explained in the charts.

Happy trading! (click on the chart to enlarge it)

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