Another week ended with decrease on DAX. We saw candle with lower high and low what confirms bearish trend. On the weekly chart we can still see bullish trend so both bulls and bears can have some optimism. If you are interested in investing on DAX or other indices, you should try FxGrow broker.
Last 3 weekly candles had higher volume what indicates some strong moves coming up. We still don’t not if it will be long or short position. However we can be sure that whatever direction the movement will be, it will be dynamic because losing side will be stopped by Stop Losses quite fast. In my opinion level 8,800 (which is fibo 50% of bullish trend lasting since 2011) will be tested before coming back to gains.
On the daily chart you can see support which stopped decreases for three times already. Bold line shows bullish trend. For 8 days DAX could not move from support for more than 500 pts. It doesn’t look good for bulls, this kind of consolidation often means that support will be attacked.
DAX futures are moving from support to resistance and the other way. After weak US Payrolls one candle took future all the way to support on 9,380 and then there was dynamic rebound. The closest supports DAX FUTURE: 9,500, 9,380, 9,330 pts. Resistances: 9,710, 9,780, 9,880 pts.
