I believe that there could be a possible large up move coming in the DAX. I know that it's pretty crazy to still be long when equities are back at their all time highs again.
However, having said that, the 200 SMA is still holding strong with the DAX refusing to drop below it. Additionally, it looks like an inverse head and shoulders pattern has formed on the daily chart implying that there may be more upside to come. Check the picture posted below:
I'm not going to be getting long just yet. The DAX will probably hover around the 50/61.8 Fibonacci line for a couple of days. Depending on the way it behaves over these next couple of days, I may get long from there. The European CPI data on Wednesday may act as a catalyst for the potential up move because it is predicted to be higher than previous.
That's all for now. Good luck and happy trading!
The Trainee Speculator
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