Monday, 29 October 2012

German DAX daily update

Today we take a look at German index DAX. At first glance, the index trades still inside the upward channel. The sideways movement from mid September until now looks corrective. The index has most probably bottomed around the 7100 level right on top of the channel boundaries. An upward move is most possible if support level and previous low at 7095 is held. The move from recent high at 7447 looks impulsive. This is the only worrying sign looking at the chart. This decline might be the start of a bigger degree move downwards towards 6750 and why not lower. 

Concluding we have to be cautious at 7095 level. Chances are now in favour of a bounce and a retest of the highs. If support is broken, then prices could decline sharply lower.

If you need help trading this index or understanding my charts, don't hesitate to contact me.

Thank you for taking the time to read my thoughts!!!

No comments:

Post a Comment