Chart of the day

DAX is testing the uptrend channel line for an extension higher 18600 level of the resistance. A break above this level will mean that the long-term five waves are not finished and that we could see a new extension higher. Rejection here will lead to a downside correction to possibly 16260.

Only in the case of a break above 18600, we can expect an upside continuation and an extension higher in a new uptrend cycle. I strongly believe that the whole world stock market is reaching the top and that we will see a reversal here to test 16000. For this to happen we need to see a break below 18150.

_{You can open a short trade entry here or upon a break below 18150 with a stop loss just above 18800. Long trades you can open upon a confirmed break above 18800.}