DAX is being rejected for a 2nd time from a long-term uptrend Pitchfork channel
On the monthly DAX chart, we can see that the instrument has rejected again from the uptrend long-term Andrew’s Pitchfork channel 13520 and is now below the first channel half median line. We saw a perfect bounce off median line 10440 but the instrument was not able to break above 13520. If this rejection from the 13200-13520 zone will be sustainable after this month pullback we could see an extension lower to the 11000 median line again and eventual continuation even lower to 10400 which is also a second channel half median line.
On a daily chart, we can see that the instrument price action is within a medium-term downtrend Pitchfork channel with first visible resistance at channel half-line 11900. This retest of the broken rising wedge 12700 and rejection is perfect to place a good RR short trade entry and to target 11950 short-term. Or we could short the pair upon a break below 12500.
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