DAX is testing the uptrend channel resistance
On the Monthly DAX chart, we can see that the instrument is trying to break above Andrew’s Pitchfork long-term uptrend channel resistance line near 15550. A confirmed break above this level would lead to an extreme upside continuation. This resistance is aligned with the uptrend broadening wedge line dating back from 2007. A rejection here would lead to a big pullback all the way down to 14000.
On a Weekly chart, we can see a new uptrend Pitchfork channel formed that is confirming a strong uptrend but with a limitation of 16300 which gives us first an opportunity for a swing down short trade. You can go short at the market with the stop loss just above 15800 to target 14000 level lower. Long trade entries are not advised here unless we see a confirmed break above the 15500.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
LIVE TRAINING ONE ON ONE 10% OFF FINAL SALE!
Andrews Pitchfork trading analysis education + One-month Premium membership
