a daily price action after hour update - dax

Good evening and i hope you are well.

After such strong rallies, markets tends to form trading ranges instead of another trend in whatever direction. So today, we chopped back and forth. Which is bad for the bears because that means acceptance of higher prices. Only question is then, how high? Most indexes have obvious targets above, which i gave in my weekly outlook. I also said market is currently bullish and today further confirmed my thesis.

dax
Dax is inside a big triangle from the recent bull trend and the upper bear channel visible on the daily chart. Today was uneventful since we close 9 points above the open price. The tricky thing on a day like today is, that the 2 to 3 legged moves inside the range look strong with good looking signal bars that just turn around at support & resistance, tricking traders into believing a breakout is about to happen. That’s just something will learn to read with hard earned experience. Nothing else.

short term: sideways to up

medium-long term: down

trade of the day: short from the open to globex gap close and test of fridays open and the long above bar 55 to todays open price. that could have been 150-200 points