- February 24, 2023
- Posted by: Tradingshot Articles
- Category: Stock Indices
DAX has had the strongest 1D bearish candle today since December 15 2022. That was the candle that accelerated the correction from the Higher High Zone (red zone) of the long-term Channel Up to the Buy Zone (green zone). With the Channel Up pattern starting on the October 03 2022 market bottom and remaining valid up to now, this Buy Zone has been the most optimal long entry of the past four months.
We look at two indicators for buying, the 1D MA50 (blue trend-line) and the 1D RSI hitting the bottom of its Rectangle pattern and entering the Accumulation Mode. A -6.50% correction doesn’t have to necessarily be completed as in late December. Our long-term target is the 0.786 Fibonacci Channel level, which an early projection giving us a 16350 Target.