DAX40 Break out or fake out?Gm
Today we opened DAX,with a gap which has been closed few hours later, and now we’re looking at price action near psychological level - 14 000.
Bullish:
(Higher low and support at point of control? ~13885?)
In this moment I’m checking if price action forming triangle pattern and if it could break out and boost price from current level to ~14160 and even ~14220 where for me is a key level resistance point at this moment.
Relative strength index line tested SMA from above and it’s going upward direction, but i have attention to lower times frames which do not give me right signs (RSI should cross SMA -15m/30m, bearish engulfing bar at 15m wasn't right sign.)
Still waiting for more bullish confirmations in short term on price action.
Bearish:
In the other hand we have price action rejected at 0.618 fibonacci level and if this a local triangle formation it could get back to 13870 where was prominent demand, and as we can assume – double bottom with a candle weak confirming value area low.
We are still under moving average ribbon and momentum still pressure for downward.
Short term:
Lower than 0.381 fibo → price going down 13 880/ 13 800
Higher than 0.618 fibo → going up 14 150/ 14 300
My prediction for now is mostly downward. But first I’ll wait to see what happens at drawed white triangle edge line. Then what will have place at 13 880 and 13 800 price levels. Anyway I don’t expect to price go higher than 200 moving average at 1h timeframe.
