DAX analysis for the week beginning 24th October
As tweeted last week, daily supply is weakening and looking increasingly likely to break to the upside. The bounce off daily demand was coupled with a “spike double bottom”.
Since then, the market has formed a broad rounded bottom and based on these factors we could see new supply at 11,100 after the US elections.
On the hourly chart, I’ll be looking for intraday stophunts and opportunities to buy at demand. Near-term stops are located at the lows at 10588-90 and 10489.
Key demand zones to buy are 10542-10562 and 10442-10468.
UPDATE Friday 28th October 2016
DAX took out the stops at 10588 as predicted. It bounced just short of our demand zone and continued for 120 points up to intra-day supply.
Although our demand was “front-run”, there was a bear trap opportunity once price had moved back above the red stop line.