As I mentioned in my earlier post I think the DAX is in a range based on the 4 hours and the daily charts. The level of preceding wave 4 of the impulse wave is pierced and if the break of this support level gets confirmed, the market will likely test the lower part of the range.
I opened a short position with a sell stop order put on the above mentioned level (10670) which is also the level of yesterday's low. SL is put at the local top (10756), and my TP is at (10376). I opened this short because in my reading a 3:1 payoff ratio can be expected. I will manage this setup as counter-trend trade. I will fine tune my TP if a downside movement gets more confirmation and I will have more data to calculate a more exact TP.
The momentum high of the daily and 4 hours chart stopped at a level where a downside movement can be anticipated. The 1 hour chart just touched the sustainable bull zone for 1 period, which makes it questionable, especially that the momentum of the higher time frames are suggesting a ranging market.
We'll see how this is going to pan out...
|DAX30 (CFD) - daily chart|
|DAX30 (CFD) - 4 hours chart|
|DAX30 (CFD) - 1 hours chart|