I think very few people are going to argue about the fact that DAX has changed its character after the big long liquidation bar occurred in the first hour of last Wed's London session.
Yesterday's break has confirmed the range between 12935 to 13000 was merely a re-distribution range. In fact, there were some sign of strength appeared in that range and i was to believe that DAX is ready to break to the upside during yesterday's NY session.
The technical setup was proven wrong -- large supply appeared out of no where after the Trump twit. That is possible that those selling were purely short term technical trader's intraday play, because DAX has retraced nearly 100% of the NY session down move in the overnight session. However, it is a tall order to hope the DAX would be back on its feet to continue a bullish drive to make a new high. As a matter of fact, the volume built around 12980 would serve as a strong resistance. So long as DAX is trading below that pocket of volume, I am going to maintain a bearish bias.
Today's trade plan is to build a core short position when DAX trades into yesterday's range. If it were to break 13010 to the upside, then the core short would be stopped out and I would seek to establish a core long position.
Yesterday's break has confirmed the range between 12935 to 13000 was merely a re-distribution range. In fact, there were some sign of strength appeared in that range and i was to believe that DAX is ready to break to the upside during yesterday's NY session.
The technical setup was proven wrong -- large supply appeared out of no where after the Trump twit. That is possible that those selling were purely short term technical trader's intraday play, because DAX has retraced nearly 100% of the NY session down move in the overnight session. However, it is a tall order to hope the DAX would be back on its feet to continue a bullish drive to make a new high. As a matter of fact, the volume built around 12980 would serve as a strong resistance. So long as DAX is trading below that pocket of volume, I am going to maintain a bearish bias.
Today's trade plan is to build a core short position when DAX trades into yesterday's range. If it were to break 13010 to the upside, then the core short would be stopped out and I would seek to establish a core long position.