Dear Traders,

Last time I wrote about DAX, as well.

Price went according to plan but then met a strong resistance at 13275 and an inside bar reversed the price.

Today, I am looking to possibly enter in a long trade after the market open tomorrow.

The daily chart

The daily chart is showing a bearish rejection candle or a pin bar.

It is a bullish candlestick formation and certainly calls in for more buyers.

The pin bar occurred just above the support zone at 13000.

4H chart

I will be looking for a possible retracement tomorrow and a 4H chart bullish confirmation before I go long (if I go long).

Possibly another re-test of the 13K-mark will give a good indication for more buyers to join the long queue.

Targets, Reversals?

A potential target could be the level of 13400, where resides the first resistance level.

The next potential target is the level of 13550, where is located the next supply zone (as indicated on the screenshot).

If price rejects any of those two levels, we might experience a sudden sell-off. Therefore, I will be extremely cautious if price reaches these levels and how it will react to them.

Happy Trading,
Colibri Trader

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