Dax downside rejection says get long
Yesterday saw a 270 tick selloff in the Dax Futures (Sep '16); from 10,657 to 10,386. This low was very quickly "rejected" with a long lower shadow showing up on a number of the smaller timeframe charts (i.e. 10 minute to 60 minute). The thing that interested me was where this low came in, as it was in the gap created when we opened strongly on August 8. This morning has started well for the bulls with the early rotation holding support at 10,510 (yesterday's VPOC (most actively traded price). I want to get long on the back of this!
Management and risk description
Entry: Buy above 10,510.
Stop: Below 10,440.
Targets: 10,650, 10,800 and 10,990.
Time horizon: 2 days to 2 weeks.
Chart 1: Daily candlestick chart
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