Chart of the day

Where do we stand fundamentally?

DAX is in the consolidation following strong CPI numbers again from Germany and Euro Zone and slight increase in Inflation. Rate cuts continuation are not warranted still by ECB and are data dependent.

DAX is testing the 18100 long-term uptrend support and a triangle continuation support. A break below this level will lead to an invalidation of immediate extension higher. For an extension higher we need to see a break above 18360 which is also triangle consolidation support.

An invalidation level of a fifth wave long-term extension higher and a bullish cycle is 17000. This extension higher could lead to 19500 target in the medium-term to long-term upon a break above 18400 again and a bounce from this 18100 support.

_{Try a short trade entry with a stop loss above 18200 first to target 17000 but only upon a break below 18100. Trade it with options as well.}