DAX Weekend Review

Daily Chart:

The Daily MyWave is bearish and as price reached down to the 9126 resistance line on Friday, it began to back off into the close. No positive divergence in the RSi at this stage, so anticipate lower prices in due course, although price is someway from the pink DMA, the green MyWave and the short term red wave, so a pull back to the blue dotted line looks a reasonable quest for any interim retracements, initially nearer 9367.

4hr Chart:

There was a hint of divergence on the 4hr RSi, Friday, but with only 3 waves down into that low on the momentum study, price seems to be in a wave 3 with a likely waves 4 & 5 to come. Price action seems stretched on the 4hr too and the same 9367 or maybe 9488 look good targets for re-shorting, if a retracement occurs. The DMA is a way off to the right at the moment, so something to burn up time next week would fit with the wave 4 retracement theme; maybe a triangle?


60min Chart:

The hourly chart was definitely showing positive divergence Friday, so a wave 3 was likely drawing to a close. The weekly 50% retracement zone sits up the 9488 area but again the DMA is way off to the right, so anticipate side wards action of some sort to burn up time. Looking to short higher up is how I am looking at the charts for now.