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
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