DAX has reached very close to our maximum target of 9100 to end the downward move from it’s all time highs and we believe that now it is time to reverse trend and make a considerable upward move. DAX has reached its long-term upward sloping trend channel and has touched the lower limits of the Ichimoku cloud support at 9071.
We now believe that if prices manage to break above 9250 we will have most probably made an important low at 9071 and we will be heading towards 9500 at least if not new highs. Of course we will have to take a good look to the form of the expected rise. If impulsive we should not rule out new highs.
The downward sloping wedge is being broken today and if this support by buyers is continues, we could see the index break reach the higher boundaries of the Ichimoku cloud resistance. We are bullish if the index makes a new higher high above 9233 and the short-term support at 9100 will be our stop.
DAX has reached the longer-term support and got very near to the 38% Fibonacci retracement of the rise from 7655. This could be a long-term low and reversal level. A move towards 10,000 points is a very possible scenario if price rises in an impulsive pattern. More details on how we trade DAX in our exclusive for members twitter account.
As always, thank you for taking the time to catch up on my thinking.