DAX Critical pivot point approaching. How to trade each scenario

DAX, as most global leading stock markets, has suffered a big set-back this week in anticipation of today's key macroeconomic data. The 1D MA50 was crossed (blue line) and the index is now close to testing the 1D MA200 (orange).

If the price bounces there then 1D (which entered into bearish territory with RSI = 38.234, MACD = 3.700, Highs/Lows = -272.3214) may reverse towards the 12,500 Resistance, in a similar way as it did on June 3rd when again it hit the same RSI level (see chart).

If however it breaks, then DAX can reach again the 11,300 1W Support level, in which case it will become a strong buy option as the Demand Zone there has been strong. Plus it will be a 1W Triple Bottom which normally makes a Higher High. The only negative parameter on this sequence is the possibility of the wider 1W pattern turning into a Head and Shoulders eventually which after a dead cat bounce back to the 1D MA200 can lead to a Lower Low under the 11,300 1W Support. News on E.U. and U.S. data (as well as key Chinese import reports and the EURUSD) have to be followed closely on that matter.





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