Market Overview: DAX 40 Futures
DAX futures moved sideways last week in an expanding triangle and a bull breakout in a bull channel. The bulls got a good buy signal, but we haven’t raced up yet. because we are in the channel phase and traders are buying lower and taking profits at highs. Bulls are starting to get bull bars again closing on their highs and so more likely the bears will get out of the way.
DAX 40 Futures
The Weekly DAX chart
- The DAX 40 futures moved sideways last week in an expanding triangle and a bull breakout in a bull channel.
- The bulls see more up after a strong spike. The sideways price action here is just profit-taking for another move.
- The bears see a double top high in a trading range, fading the move back to the MA.
- But we are always in long. So, most traders should be long or flat.
- Always in traders may have exited below one of the bear bars.
- Other bulls bought below the last strong bull bar in the microchannel. That was a strong limit order buy setup.
- Other bulls got long above the last strong bull bar a few weeks ago but have not made money yet.
- The bears have sold above two bear bars and made money. They want this to create a smaller double top and break below for a measured move down.
- But there is more likely buyers at the MA.
- Bears have not had a good sell signal, which is all low probability. That is likely why we are going sideways.
- The bulls want a sell signal to fail strongly so they can get the price chased up higher.
- Bulls will buy below bull bars near the MA, which is also where bears will get out.
- The High 2 was a bear bar but it got a successful test so one more signal should’ve enough to move higher.
- Expect sideways to up next week.
The Daily DAX chart
- The DAX 40 futures moved sideways in a TTR, inside a bull spike and channel.
- The bulls broke above a lower high, the top of a recent sell climax and expect a MM up. They are about halfway.
- The bears are selling above bear bars but are having difficulty making money.
- Bulls are buying low and scaling in lower, and so should you.
- The bears got a few bars below the MA but failed to close the gaps to the prior breakout points. They might want to test it one more time before more up.
- But the bears keep getting trapped and will unlikely sell so low. If they are only going to sell higher, then we will keep moving up in a bull channel.
- The bulls need consecutive bull bars to make the bears give up.
- The bears need more bars below the MA.
- It’s still always in long and above both moving averages, so it’s better to be long or flat.
- Bears would need to close the gap or close a few exhaustion gaps above before I would be willing to sell this chart.
- I’m expecting a buy signal on the MA to get long.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
Great! It has been a pain to trade DAX the last 2 weeks. No followtrough in the morningsession.
Mate triangle city…. I did a lot of scalping and setting alerts but missed some big moves… I did better in ES last week – how did you go?