DAX: Supported by the 1D MA50, ready for a slingshot.

DAX is on a marginally bullish 1D timeframe (RSI = 56.008, MACD = 24.500, ADX = 26.521), which indicates that there is still significant upside potential to the rebound that started on the July 7th Low. That Low may have been a HL on the long term Channel Up but also a LL on the two month Channel Down. The 1D RSI is also at the top of its Channel Down, so in order for us to buy again, we need to see a breakout over both tops.

If that happens, then there are high probabilities of the move replicating the slingshot of April-May as they both broke out after an Inverse Head and Shoulders was formed. Consequently we will buy that breakout and set a TP = 16,800.

It's worth mentioning that a crossing over the R1 invalidates the potential of a Head and Shoulders (bearish pattern) that may be forming since May 19th.

Prior idea:


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