Good morning and good Sunday to all,
it is a market in august that has always been dangerous and treacherous over the years, in the first week of trading we saw a recovery movement on monday, august 3 where the dax held the 12200 area.
After a move of about 300 points from the period lows,the market congested throughout the week in the 12500-12800 area and never made any daily timeframe closes below or above these levels.
In the webinars and premium chat we identified as early as Tuesday this possible congestion,trying to work us the two price ranges( shown in the black arrow ) buying in the 12500 area and selling in the 12800 area to take advantage of this trading range.
The green and red arrows are possible targets if price were to break with h4 or daily closes the two range levels, right now it is difficult to guess where the market might go, the prediction is that a major move might start given the market so compressed.
But as you know I am made for unbalancing and always putting my face on it, for me we could see accelerations still to the upside in the 12900 area and then continue to the highs in the coming sessions.
The very good holding of the levels below makes me lean toward the upside at the moment,it is obvious that any news could change this scenario at any time, which is why I strongly recommend lowering the entry leverage to the minimum union level.
Volatility could turn on at any time, doing irreparable damage takes little while recovering takes a lot.
Happy Sunday to all!