{"id":159709,"date":"2022-09-03T07:00:00","date_gmt":"2022-09-03T14:00:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=159709"},"modified":"2022-09-03T02:06:16","modified_gmt":"2022-09-03T09:06:16","slug":"dax-40-breakout-test","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/dax-40-breakout-test\/","title":{"rendered":"DAX 40 Breakout Test of the Prior Trading Range"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: DAX 40 Futures<\/h2>\n\n\n\n<p><strong>DAX futures<\/strong> reversed strongly closing on the lows so it&#8217;s a sell signal on the monthly chart. It&#8217;s a DAX 40 breakout test of the prior trading range of January 2021. The bears want a move back into that range, a failed wedge bottom. The bulls see support at the moving averages and the range lows and will continue to buy below bars. If the bears can get a consecutive monthly bear bar we could test the 11000 area.<\/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>Monthly<\/em> DAX chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range.jpg\" alt=\"DAX 40 Breakout Test of the Prior Trading Range\" class=\"wp-image-159781\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range.jpg 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption>DAX 40 Breakout Test of the Prior Trading Range<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The <a href=\"https:\/\/www.investing.com\/indices\/germany-30-futures\" target=\"_blank\" rel=\"noreferrer noopener\">DAX 40 futures<\/a> was a bear bar closing on its lows. A very small tail below.<\/li><li>It&#8217;s a sell signal in a bear trend but has lacked consecutive strong bear bars.<\/li><li>The bulls see a DAX 40 breakout test of the prior trading range. Micro double bottom &#8211; Micro DB, a breakout pullback to the high of the prior trading range around January 2021. <\/li><li>The bulls see support as 3 months &#8211; March, June and July &#8211; with tails down here so we can expect them to scale in below.<\/li><li>The bulls see a wedge, three pushes down &#8211; February, June and July and bought the July high for a low-probability swing.<\/li><li>The bulls see July as a reasonable buy signal, the second entry long in a two-legged pullback after a bull trend. It made sense that we traded above the midpoint of those two entries to let longs out.<\/li><li>The bears see a bear trend, a tight bear channel and want a failed breakout below the wedge. They want a consecutive bear bar for a measured move down.<\/li><li>The trend lacks good stop entries. When both sides are making money the trend is not strong and may turn into a trading range. That is why it looks like a DAX 40 breakout test rather than a bear trend on the higher time frames.<\/li><li>It&#8217;s better to be short or flat &#8211; if you&#8217;re short, stop above August. If you&#8217;re long you can get out below July, or buy more on the breakout bar betting we will get back to the midpoint to get out breakeven.<\/li><\/ul>\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\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range.jpg\" alt=\"DAX 40 Consecutive Bear Bars Low in a Trading Range\" class=\"wp-image-159789\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range.jpg 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Consecutive-Bear-Bars-Low-in-a-Trading-Range-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption>DAX 40 Consecutive Bear Bars Low in a Trading Range<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The <a href=\"https:\/\/www.investing.com\/indices\/germany-30-futures\" target=\"_blank\" rel=\"noreferrer noopener\">DAX 40 futures<\/a> was a bear bar with a tail above and small tail below. It is 3 consecutive bear bars so we are always in short.<\/li><li>The bulls see a wedge bottom and a higher low major trend reversal. But it&#8217;s not a good buy signal. They see the move as a pullback to the trend channel line to continue higher.<\/li><li>The bears see a bear trend and lower highs and lower lows. They want a break below July for a measured move down or at least another leg. There is also a gap between May and August.<\/li><li>The bears know there is a harmonic move down around 11800, which is also the measured move target so 50% chance we get down there. The breakout of the prior range is around this area.<\/li><li>The bulls want a fortnight like in July, big tails below and set up another buy signal. It would be the second decent buy signal at the bottom of the range, a second entry so a higher probability swing up.<\/li><li>But it&#8217;s a trading range so we can expect disappointment next week. Big bear bar with a big tail below. Big Bull bar with big tail above.<\/li><li>Probably sellers above last week expecting a second leg after 3 consecutive bear bars.<\/li><li>Bulls were able to get 4 consecutive bull bars so the trend is not that strong yet. Bulls want a pair of consecutive bull bars here to move back up.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>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 reversed strongly closing on the lows so it&#8217;s a sell signal on the monthly chart. It&#8217;s a DAX 40 breakout test of the prior trading range of January 2021. The bears want a move back into that range, a failed wedge bottom. The bulls see support at the [&hellip;]<\/p>\n","protected":false},"author":10339,"featured_media":159781,"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":[333,1700],"class_list":{"0":"post-159709","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-dax-40","8":"category-analysis","9":"tag-breakout","10":"tag-dax-40","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/09\/DAX-40-Breakout-Test-of-the-Prior-Trading-Range.jpg","author_info":{"display_name":"Timothy","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/timfairweathercagmail-com\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/159709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/10339"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=159709"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/159709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media\/159781"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=159709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=159709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=159709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}