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Market Analysis

Home » Featured » DAX Technical Analysis for January 05, 2016

DAX Technical Analysis for January 05, 2016

Posted by Harsh Japee in Featured - January 5th, 2016 6:48 am GMT

dax05012016

Chart setups:

The 4H chart view presented here, indicates that DAX might have just completed its first leg down from 10850 levels. The indice had dropped through 10200 levels, before pulling back higher again. The most probable wave count possible from current levels is at least a corrective (3 waves ) rally towards 10600/50 levels before deciding further direction. The other potential wave structure could be a rally through 11000/100 levels and then reverse. In either case, a reaction around 10600/50 levels would be decisive about the next big move. Immediate support is seen at 10100 levels while resistance is seen at 10850 levels, followed by 11000/100 respectively. At least for now, the bears would remain in control till prices stay below 10850 levels. Looking at the RSI, which trades at 30 levels, conditions seem to be encouraging to at least a corrective rally towards 10600/50 levels.

Trading recommendations:

Take profits on short positions taken earlier. Long now, stop at 10090, target 10600/50.

 

 

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