Dax Technical Analysis 06/04/2016

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Good morning traders!

I confirmed yesterday that my bias had changed to neutral/bearish
Today I have changed my settings on the RSI from bullish to bearish
I am looking for fib extension completion then a pullback to a sell zone
Nikkei “is in full meltdown mode” – rapidly approaching the Feb low, will Dax follow?
Current RSI settings: 5minute, 60 10 RSI, 14 periods

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I think a lot of traders and analysts turned bearish yesterday and unfortunately there are many traders out there still sat on ugly looking long positions, which could be painful especially if the Dax follows the acceleration of the Nikkei.

If we look at the hourly chart, then draw a fibonacci extension, I think tomorrow is likely to see us at least complete a 100% extension (using the end of March high, to the early April low, then the rebound) you will see an extension target of 9484. With a closing daily candle as heavy the one we saw yesterday, I would imagine we will see a number down there.

I would like to see a bounce from that level, perhaps up to 9700, then I will jump in and sell targeting a move down to the 9400 support.