AvaTrade - Analytics

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DAX30 Pointing for more correction

The DAX30 index has broken its downward channel pattern on a 4 hour time frame. The projection of this pattern could easily push the price towards the minor support zone which is mentioned below. Although, the price was very close to touch that level before it bounced back up but the sell off has continued once again and if we break the previous low then the odds are that we may go pass the minor support zone and head towards the major support zone. The price is also trading well below the 50 and 100 day moving averages showin in green and red color respectively and this represents that the bears are in full control of the price.

The bull and bear indicators are also confirming that the bearish sentiment is in full control of the price and this bias remain towards the downside or perhaps more correction. The RSI indicator is still trading near the over sold region and this translates that the any downward move should be taken with some caution as we are already in the extended part of the sell off.

DAX30 26-08-2015

Important zones

8748-5648 Major Support

9257-9112 Minor Support

11013-10876 Minor Resistance

1166-11522 major Resistance

 



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