Market Video Overview: DAX 40 Futures
Tim Fairweather’s weekly report on the DAX 40 futures market.
DAX 40 report transcript
Hello everybody. And welcome again to a different Brooks Trading Course weekend market report. My title’s Tim Fairweather. And at this time we’re going to undergo the DAX 40 futures index. So final week was a small bull doji with an enormous tail above. You may see we simply went as much as check 19,000 once more, after which went again right down to the excessive of final week.
So final week was a very good entry bar for a excessive one. We spoke about that final week. So it triggered these bulls and it gave them absolutely the minimal they wished, which was a bull bar and a detailed above the prior week. So that they’re lengthy. Uh, these bulls are in it to get to, they simply received a brand new all time excessive, however they’re in it to get probably the final leg of what I believe goes to be a wedge high.
Uh, and it may be that this leg goes to be one, pause, two, pause, three. So I believe we’ve had one leg, two leg, A few legs sideways. After which this third leg goes to be one, two, three as much as what I believe may be a wedge high, however that might be completely flawed. After all, this, these 4 bull bars listed below are ok to get a second leg.
And I don’t suppose this second leg in the mean time is sufficient. The bears, what do they see? Properly, the bears see that they’ve been getting units of three bear bars, 5 bear bars. They’re capable of create numerous promoting stress round 19,000. And that’s an issue for the bulls, as a result of what it means is that if I’m a bull, why am I going to purchase excessive after I’ve received an opportunity to purchase decrease across the transferring common?
And you’ll see It was very troublesome to lose cash shopping for the transferring common prior to now couple of months. So even when the bears are capable of get some observe by way of down right here, I believe that’s going to end in extra shopping for. What are the bears want? Properly, bulls are triggered in above the excessive of that bar.
Some bulls purchased absolutely the excessive there. They had been triggered on. The purchase above that bar at 19,000. So some bulls purchased right here, purchased the transferring common or purchased decrease, they usually received out at 19,000 and that’s what we’re going to search out out subsequent week. Simply what number of of these bulls. are literally exiting versus what number of new bulls are getting into in.
I’ve received a two hour goal as a result of I believed in case you purchased above this bar right here, it was the primary bear shut under the transferring common, and usually that shut is an affordable setup for a purchase, often on a decrease time-frame. However then you definately’ve received a purchase sign arrange right here, which had an important entry bar, nice observe by way of.
If you happen to waited for 2 bull bars, you had an important entry and observe by way of. And I believe as a result of it’s closed so excessive and received a brand new excessive, there’s no motive for these bulls to get out. Different bulls are taking a look at that as this can be a buying and selling vary on the weekly chart. However we’ve examined 17, 000 a few instances and gone away.
We spent a little bit of time at 18, 000 and gone away. And so I believe numerous these bulls have determined that 18, 500, which is someplace in there, to 19,000 is the vary. What do the bears want? Properly, they don’t have a promote sign for subsequent week. So it’s not an important promote under there. I believe there’ll be patrons on the transferring common.
The bears actually need, I believe, to get a smaller wedge high right here, some good bear bars, as a result of in the mean time, there’s numerous bear bars you could promote above and generate income. And in case you take each bear bar right here, so you possibly can see right here, promoting above bear bars anyplace between 18,500 and 19,000 has been worthwhile.
And so, that is creating this channel, and I believe this channel goes to proceed. Nonetheless at all times in lengthy, and I believe there’s going to be one other leg, so sideways to up subsequent week. Uh, probably, sideways to the transferring common. And that’s on the weekly chart. You may see right here, the bears have been capable of create a second entry brief.
They’ve received a double high right here, in order that they’ve received a promote sign which triggered right here. And we’ve had one, pause, two, pause, three. Up right here. And now we’ve received one other promote sign right here. So that is fairly attention-grabbing to see what’s going to occur right here. This channel is tight. So I believe on Monday, if it triggers, we’re going to go sideways, however there’s an opportunity that there’s going to be bears promoting right here, betting that they’re going to crash by way of the transferring common and run the stops of any of those bulls, the board late, what they’ve received in opposition to them in the mean time is when the bears offered.
We went above the highs right here. We went to the transferring common and there have been simply no, not sufficient bears there to push the market down. Any bears that offered there or who offered that hole received caught after which bulls ran it up. After which that grew to become a layer of assist to maneuver up. So I don’t suppose there’s any extra bears caught down right here.
I believe all of the bears are going to be right here and better. And I believe that is most likely. An inexpensive bear scalp try up right here. So bears want a observe by way of bar. Properly, they want a very good entry bar in the event that they’re going to take that brief. So bears are promoting mainly a wedge bear flag, dueling strains. So three push sample to a double high at 19,000, hoping to get again right down to 18, 5, most likely simply over one to 1 on that commerce for the bulls.
Haven’t had a pattern line break but. So that they’re fairly assured a purchase right here and a purchase on the transferring common would no less than assist them get out break even. We simply went above 19,000 as soon as. So we’d have to return above there once more to see if there are any newer long run patrons. So nonetheless at all times in lengthy for the bulls on the every day chart, however the first cheap promote sign that’s appeared, it’s nonetheless sideways to up on the weekly chart.
However you possibly can see with all this buying and selling vary worth motion, it’s been very uncommon that the market has simply taken off And created open gaps and it’s been extra frequent that the market has simply gone sideways to down in a channel. You may see I’ve received some channel strains drawn the place we’ve received a wedge bear flag right here that failed.
Then we’ve received a wedge high that labored. We’ve received a wedge backside that labored and now we’ve created a wedge high up right here. So is the market going to proceed to do what it’s been doing? Or is that this going to fail and we’re going to go up that method? So the primary motive we’ll promote sign for the bears on the every day chart However nonetheless in a excessive time-frame bull pattern and we’ll see if there’s extra patrons or sellers on the transferring common And I believe we’re additionally going to go and check 19,000.
In order that’s the evaluation for final week on the German money index. My title is Tim Fairweather and we’ll see you subsequent week
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