DAX: Sell signal short term but bullish reversal if HH break.

DAX turned overbought on the 1D time frame (RSI = 72.776, MACD = 187.300, ADX = 43.679) as investor euphoria spread across the stock markets on a dovish Powell, and the current 4H candle broke above the short term Channel Up. If it closes back inside the Channel Up, we will regard this a sell signal aiming at a -2.30% decline (TP = 15,100).

On the contrary, if DAX breaks above the long-term HH trend line first, we will buy and aim at the All Time High (TP = 16,300) as a repeat of the January 2nd - 18th +10.30% rally will be more probable.


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