By Claus Andersen
29. April 2019
Price is coming out of the trending trading range context and moving into a more permanent range. How long it will stay like this is unsure. But one thing that allows us to do, is to trade the DAX both ways. Longs at support and shorts at resistance. In ranges the rule sell high buy low and scalp apply. I do still favor the upside slightly on the short term. I many ways the ranges can be easier to trade though less profitable than trends.
This could be a reversal pattern or a larger time frame flag pattern. Probabilities say most likely a flag pattern. In that case >70% chance that we get more upside.
Notice how the BO above the black TR was a 100% expansion of the range. How the short term channels play out from the high to the low of the new upper range.
The bears tried to make a bull trap after a failed BO today. The trap failed to. That is tells me that we could expect sideways trading and another test of bull strength.
New support and resistance levels is on this chart.
Have a nice trading week.