VANTAGE:DAX40
A possible bounce from the top of symmetrical triangle combined with an Elliott correction wave may give a good shorting opportunity but we'll need a convincing close below the trendline.
A possible bounce from the top of symmetrical triangle combined with an Elliott correction wave may give a good shorting opportunity but we'll need a convincing close below the trendline.
Trade closed: target reached:
Originally, I didn't plan for the first correction to happen in a single day.
Today the ECB monetary policy meeting accounts data will come out at 14:30 UTC+3. If the ECB is hawkish, then we might see a massive drop and increased volume.
As you might have noticed, EU indices are currently outperforming their American counterparts quite handily. This is partly because of the loose monetary policy and stimulus, but if investors start pricing in higher rates, then DAX will catch up to S&P in a week. A long term short position might be appropriate.
Today the ECB monetary policy meeting accounts data will come out at 14:30 UTC+3. If the ECB is hawkish, then we might see a massive drop and increased volume.
As you might have noticed, EU indices are currently outperforming their American counterparts quite handily. This is partly because of the loose monetary policy and stimulus, but if investors start pricing in higher rates, then DAX will catch up to S&P in a week. A long term short position might be appropriate.
Comment:
Although not as clean, correction wave B has been completed and we are now working on correction wave C. With the hawkish tone of the ECB, I will not be surprised if we breakout of the symmetrical triangle. If that happens, be prepared to open a juicy short position.