Some basic price action, a 5 wave pattern and technical analysis shows the DAX entering a possible exhaustion area. Couple this with COT Data versus Retail Sentiment and we could be hitting our heads back down before the 16000 level. Personally I've been trailing a long position which now has a healthy SL at a very positive level. Will keep an eye out for short signals and price action after the Easter Holiday.
Trade closed: target reached:
Took profit at 15825. Also had a long position on S&P and took profits at 4146... But now what? If it's following my prediction early, that's great; we all get to enjoy re-entering at a better price later and maybe a cheeky short on the way down. But what if we're not done with the bull squeeze?
Comment:
Shorting from 4110 with a hedge position above that in case it decides it's not done. Will be trailing this short to target 3910. It's a long way down, but will keeping a close eye along the way.
Comment:
Long from 4115 while it eats up the the "shock" news. Made gains on the rally this morning and some losses on the dump, but hedged it to save losses.
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Sitting on hands now after that rally and modest profit. I suspect a pull back before another level up to 16000. Then we'll see if we're really bullish.
Trade active:
So my drop theory played out and I have a short from: 15877 to: 15678 and will trail my SL along the way.