DAX has recently made a sideways movement with successive lower highs and lower lows. Although an overlapping pattern, traders should be very cautious with any long position. Short term support at 7300 and resistance at 7400 provide us with a trading range where we should be neutral. Very important support is at the 7100-140 level. Very important resistance is 7500. Trades should be made when resistance or support levels are broken. US elections could provide a bit of extra volatility in the next few sessions.
Prices still trade inside the upward blue channel and the bullish resumption of trend remains a good possibility. Breaking that channel downwards could push prices into a deeper correction.Another bearish sign that makes us be even more cautious is that the downward portions of this move feel impulsive, whereas the upward movements are corrective. Whether forming a longer term top or just an intermediate one, traders should be very cautious and ready to change strategy from long to short.
For more help trading this index, don't hesitate to contact me. Thank you for taking the time to read my new post.
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