DAX is being rejected by the long-term channel top 19000 level and has reached it in five waves. It means we are at the end of the five waves higher long and short-term and it has been reached in sharp rising wedges. A rejection here and a break below 17800 will open a strong pullback and a test of the most important support 16000. Learn to Trade Indices profitably.
How to trade this?
It is a fact that a strong upside resistance for Q2 2024 is 19000 If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 19000. You can try a short trade here with a stop loss above 18500. The short-trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].
The Weekly DAX chart reveals an addition to the previously mentioned important wedge breakout looming. As the long-term charts imply, at this point look for the short trade entries or sell positions building upon a break below 17800 as they have a higher probability of success. We will need to see a big break above 19000 to see an extension higher, an invalidation of the complete downside reversal, and an invalidation of the five long-term waves end.
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As the famous trader says…
“If you have a losing position that is making you uncomfortable, the solution is very simple: Get out…”Paul Tudor Jones
How to trade this?
It is a fact that a strong upside resistance for Q2 2024 is 19000 If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 19000. You can try a short trade here with a stop loss above 18500. The short-trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].