DAX Price Action

Today we have seen a quite volatile day on the German stock market. As I have recently written, the DAX trade turned out to be a very precise one. The price went down to the level of 10,800 and then was sharply pushed up by new buyers. A lot of the short-sellers were closing down positions at this support level and this led to the intensified pull-back. Your trades should not have been stopped, since the stop of this trade was placed under 10,790. So, it was really close, but as you can see 10 points can really make a huge difference.

For me it looks like the price has reached a major turning point and the latest correction might have been already exhausted. The daily price action is telling me that there are no longer sellers willing to sell any further. The daily candlestick pattern is a bullish engulfing, which further confirms my bullish view. If you want, you can take another long position or use my scale-in technique, for which I talk in my course and increase your long exposure. In case you couldn’t take this trade, I would say that a suitable point to enter in a long position would be the level of 11,050. The stop should be placed under the level of 11,790. The first target is the level of 11,350. Afterwards, it all depends on price action.

Happy Trading,