Last week ended without a breakout of negative sentiment on DAX. Break of year’s low in a week before made a very negative impression according to Elliott Waves theory. On weekly chart we can see lower highs and lows what confirms bearish trend. The hope for gains is in triple bottom pattern (also on weekly chart). Volume of last week candle was quite big and doji candle was created what points that there is balance between bulls and bears.
IF YOU ARE INTERESTED IN INVESTING ON INDICES LIKE DAX30, TRY FREE FXGROW ACCOUNT
On Daily time frame on DAX we can set bearish channel in which index was moving and currently its upper band is in 10,200 pts. Only breaking this resistance will let us look for a chance of further bullish move. More probable scenario is a rebound and continuation of bearish trend.
More clear look situation on MDAX index. 2015 low was not broke and last two weekly candles are bullish so the bulls are much stronger here. On weekly chart we can spot clear support in 18,200 pts area and resistance in 21,650 pts area. Between this levels price is moving for almost a year and currently after rebound from lower band it is going up.
