SEP'16 Dax: Shooting star points to pullback
This week’s signals have remained bullish for the sixth week in a row, though the view is becoming increasingly cautious.
Although Monday’s trading is so far confirming this view with gains of just over 100 points and a fresh 2016 high above 10,800, this level has attracted sellers for sentiment to close little changed on the day.
A daily Shooting Star has been formed, a sign of bullish exhaustion so profits could be taken on the expectation that there will be a pullback.
Management and risk description
Allow room to sell a bounce and lower stop to entry if the first target is met.
Entry: Market and 10,760.
Stop: 10,809, just above yesterday's high.
Target: 10,629., Thursday's low and 10,553.0 - last Tuesday's Marabuzo line.
Time horizon: Today only.
— Edited by Adam Courtenay
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