Beside technical setup check summary of coming events in 2nd part of October in this post: https://www.tecet.net/?p=1286
Our trades in DAX worked very well past few weeks. Picking short sell side since August was good winning trades.
Great opportunity on long from mid September based on expiring futures contracts and buyout hit firmly and fast 12300 target.
Last week short trades also was outcome of plan setup before and during mid September rally, there was good attempt from buyers to break pattern but market conditions suppress that and we participate in short sell from 12460 to 220 and then 12350 to 12100/50
It is amusing how chain of events worked out shifting weight from sellers to buyers and to sellers again, some times it looks like part of longer well engineered plan but it is way more simple, market makers pricing certain economic and political events in instrument and take profits on results.
So it look like problems wit Italy budget plan pop exactly when was need to cap September rally, spike in US yields to break support at 12220 and so on.
Next week signals:
Buyers: Will try save 61.8 retrace (12100) break again August / September down trend and aim for long term down trend line. Chance to pull out good buy setup started mid September so good to watch action early next week.
Last chance to save September rally is on create higher lows around 12k mark, that zone we can see on chart marked also by green doted support trend line
Sellers: Will be working to cap attempts to rally back above last week highs, to prevent profit take and adjustment from oversold conditions to be turn in to bullish rally.
targets 12k trend line and push under to erase September lows and further towards 11730/500
Resistance and turning points: