By Claus Andersen
21. January 2019
15 min chart:
After almost 10 days in a trading range the bulls got a successful breakout. The question is, where do we go from here? Price has started to pull back after the breakout. My guess is, that price will pull back in two legs sideways to down. Could go as far as 11.000. Just above 11.000 is two technical areas. One is a 50% retracement from the bull leg, the other is a 100% expansion from the initial bear leg in the pullback. Look for the pullback area on the chart.
Support and resistance levels is adjusted in the screenshot.
In yesterday’s video I explain breakout pullbacks. And that is just what it looks like in the DAX now. Now we look at the strength of the pullback compared to the bull breakout. So far it is a weak pullback, but we need more bars to draw a conclusion. It is very likely that the high of the bull leg will get tested before long.
Have a nice trading week.