Interesting situation on DAX
There is something interesting going on when we check DAX chart. Nothing is sure yet, but it looks like there might be more movement here in the near future.
On monthly we can see that price is below blue line (Kijun-Sen from Ichimoku) which is a resistance for a while. If price manage to close above that line, we might see more movement up.
If we check averages on monthly, we can see that 55 expotential moving average acted again as a support:
So any close below that average will be probably a start of move down to next support area.
On weekly we can see that price is right below two resistance lines. It is also below cloud. I marked with rectangles moments when cloud worked as support/resistance for DAX. And now DAX is right below cloud. If it manage to close above that cloud, we can see nice move up.
We can spot potential ABC pattern. You can see that Fibonacci retracement 78.6% worked as support.
But that does not mean that we will have a move up. As I said – price is right below important resistance levels. If price will go through them then we may look at Fibonacci extensions as potential take profit targets.
On four hour chart we can spot breakout from flat cloud (marked on chart). If you trade with Ichimoku long enough, you know that this kind of breakout from very flat cloud can be a start of some strong move.
Also trend itself look strong (with price above Kijun and most of the time above Tenkan line).
Hard to tell if price will manage to go through resistance, but this is important moment for DAX. It should give us some good trading opportunities on lower time frames (because of stronger trends).