Been struggling with an ear infection, so a bit slow in writing up the past two days. I have banked my longs and attempting short positions into 9050. The 4hr chart shows the price envelope starting to flatten out. which suggests a test of the lower channel. It may be that the last cycle low on the hourly chart of 9148 holds, but I think we may see more consolidation before going up.
The daily chart got overbought on Thursday as price pushed the pitchfork perimeter and went outside the volatility channel, with the median of that channel also at the 9050 area today and starting to rise. Overall then, I am bullish on the Dax but looking to sell into a base in preparation for buying the next rise. Cover sits above 9400 for me today but I'll be banking shorts as profits arise and dropping the cover line. Of course, this bullish set up suggests the pitchfork and ellipse may burst to the upside at some point but for now, they are creating resistance.
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