Chartster
Long

DAX bearish channel breakout???

FX:GER30   DAX index of German listed shares
992 1 8
Following the recent market drop, price formed a strong Double Bottom @ 9400. This triggered a powerful rally which saw price breakthrough back into the bearish channel of May.

Very strong Weekly and Daily candle closes indicating further upwards momentum . With Weekly MA's looking to possibly cross to the upside.

Given the current situation we have two scenarios; DAX             will stay within its previous bearish channel or DAX             will breakout of this channel either to the down or upside. Considering current PA, I'd consider a break to the downside very unlikely. For me I'm expecting a break to the upside, the two factors being previous PA and the EU weakness at the momentum . If EU reaches 1.066 this will fuel DAX' upside momentum out of the channel, first breakout target @ 10300.

I'm expecting the highlighted resistance zone to create a nice pullback to 10555 before a rally up. This will allow for a nice long entry. Alternatively a short can also be taken here to the level of support, and should it break further downside to 10031 is very likely before a stronger move up.

Happy Trading!
Chartster
lloyddavies64
a year ago
Very good....indeed. Where do you think we are going now?
Reply
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