Last week promised to be very interesting. Central banks should have helped in volatility, on Wednesday there was FED decision about interest rates and on Friday meeting of Japanese BoJ. Eventually both events didn’t caused any bigger moves on German DAX.
Investors ended month in good moods and German bulls can be really happy, DAX gained in Octoober 1,100 pts and it is the biggest monthly gain in history of German index. The biggest influence on stocks had Wall Street, where S&P500 came back to resistance at 2,100 pts. Wall Street and price of EURUSD which is close to support at 1.1000 are two main indicators which can influence DAX in nearest future.
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On weekly time frame MACD gave buy signal. This indicator can show long term trends. Only breaking 11,200 pts level will give really strong signal for bulls. On this level we can find upper band of bearish trend and 61.8% retracement of bearish move.
In long term we can still point two possible scenarios according to Elliot waves. In first one DAX is currently in first wave of new bullish impulse. The second one says that index is in big bullish wave B after which we will see another decreases.
On daily time frame the most important resistances are at 11,000 pts and 11,150-11,300 pts. Support is at 10,500-10,600 pts, if price will go below this level it will mean breaking monthly bullish trend line and close of bullish gap from October 23rd.
