{"id":179218,"date":"2023-05-27T07:00:00","date_gmt":"2023-05-27T14:00:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=179218"},"modified":"2023-05-27T03:30:06","modified_gmt":"2023-05-27T10:30:06","slug":"dax-40-breakout-pullback","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/dax-40-breakout-pullback\/","title":{"rendered":"DAX 40 Breakout Pullback or Failure above ATH?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: DAX 40 Futures<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>DAX futures<\/strong> moved lower last week with a bear bar and a tail below. It is a DAX 40 breakout pullback for the bulls at the All-time High (ATH). The bears see a failed breakout (BO) above. But bears have failed to make money for months so traders should expect to stay long or flat until the bears can close the gaps below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">DAX 40 Futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> DAX chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH.jpg\" alt=\"DAX 40 Breakout Pullback or Failure above the ATH\" class=\"wp-image-179293\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH.jpg 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption class=\"wp-element-caption\">DAX 40 Pullback or Failed BO Above the ATH<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.eurex.com\/ex-en\/markets\/idx\/dax\/DAX-Futures-139902\" target=\"_blank\" rel=\"noreferrer noopener\">DAX 40 futures<\/a> was a big bear bar closing below its midpoint with a large tail below.<\/li>\n\n\n\n<li>It followed a bull breakout to the ATH last week. But we did not trigger the buy above that bar. So it is a 2-bar reversal.<\/li>\n\n\n\n<li>We closed back above the inside bar to the left &#8211; which was reasonable as BOs from inside bars fail at a higher rate.<\/li>\n\n\n\n<li>The bulls see a tight bull channel with 3 pushes up. They see the bull BO above the channel and want a measured move up.<\/li>\n\n\n\n<li>The bears see a final flag and failed breakout of the bull channel &#8211; so a wedge top and expect 2 legs sideways to down &#8211; likely to the moving average (MA) and maybe test the start of the last leg.<\/li>\n\n\n\n<li>The midpoint of those two is 15000, which has been an important magnet for 2 years now.<\/li>\n\n\n\n<li>The channel is tight, and the bears have not had decent sell signals yet. Lok left and see how challenging it was to sell to make money. <\/li>\n\n\n\n<li>Limit order bears are still unable to close the gap, so they haven&#8217;t made money yet &#8211; they need this coming week to close a bear body below the prior high.<\/li>\n\n\n\n<li>With the gap open, it is still more bullish and likely buyers below the tail from last week.<\/li>\n\n\n\n<li>If the bears get a breakout, expect buyers at the MA &#8211; there has yet to be a bar body touching the moving average. The first time the bears do anything, it will find buyers.<\/li>\n\n\n\n<li>Expect an inside bar next week or a bear bar with a tail and a bad close next week. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> DAX chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up.jpg\" alt=\"DAX 40 Expanding Triangle, Confusion, Outside Up\" class=\"wp-image-179297\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up.jpg 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Expanding-Triangle-Confusion-Outside-Up-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption class=\"wp-element-caption\">DAX 40 Expanding Triangle, Confusion, Outside Up<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.eurex.com\/ex-en\/markets\/idx\/dax\/DAX-Futures-139902\" target=\"_blank\" rel=\"noreferrer noopener\">DAX 40 futures<\/a> was an outside up bar closing back at the moving average.<\/li>\n\n\n\n<li>The bulls see a micro DB and a failed bear breakout.<\/li>\n\n\n\n<li>The bears see a failed bull breakout and a pullback.<\/li>\n\n\n\n<li>How can both sides see a breakout? <strong>It is a trading range.<\/strong><\/li>\n\n\n\n<li>The bulls see an equal low, not a lower low, after a higher high so the swing point is still intact. But likely a magnet to test next week.<\/li>\n\n\n\n<li>There is still a bull breakout point above the bear outside-down bar on March 9<sup>th<\/sup>: support.<\/li>\n\n\n\n<li>The bulls see a deep pullback and a possible double bottom (DB). They want another buy signal, a High 2 to buy for a chance to get back to the ATH.<\/li>\n\n\n\n<li>The bears see a High 1, which is a bad buy signal in a bear spike and a reasonable place to sell. Although at the MA is not a great entry place for the bears in a bull trend.<\/li>\n\n\n\n<li>We said last week that the expanding triangle has a high chance of failure &#8211; bull channels usually have bear BOs. About 25% of the time, they break out strongly. We said it would reverse in about 5 bars, but it reversed immediately.<\/li>\n\n\n\n<li>This is likely to have trapped bulls up there.  <\/li>\n\n\n\n<li>It triggered the buy on the Monthly chart. Most higher time frame signals trigger and then immediately pull back. The bar&#8217;s size on Friday indicates there is still buying pressure.<\/li>\n\n\n\n<li>Although bears broke a trendline, and they will be looking to create a lower-high and take out a swing low before bears start to strongly short.<\/li>\n\n\n\n<li>We have been sideways for 4 weeks now, so traders should expect more sideways price action next week.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: DAX 40 Futures DAX futures moved lower last week with a bear bar and a tail below. It is a DAX 40 breakout pullback for the bulls at the All-time High (ATH). The bears see a failed breakout (BO) above. But bears have failed to make money for months so traders should expect [&hellip;]<\/p>\n","protected":false},"author":10339,"featured_media":179293,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[1698,136],"tags":[1700,1378],"class_list":["post-179218","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dax-40","category-analysis","tag-dax-40","tag-failed-breakout","entry","override","shadow"],"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/DAX-40-Pullback-or-Failed-BO-Above-the-ATH.jpg","author_info":{"display_name":"Timothy","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/timfairweathercagmail-com\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/179218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/10339"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=179218"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/179218\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/179293"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=179218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=179218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=179218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}