DAX Technical Analysis for November 04, 2015
Posted by FXTimes in Featured - November 5th, 2015 5:07 am GMT
A 4H chart view has been presented here, which indicates that the corrective rally that begun from sub 9300 levels, is coming to an end around the 11000 mark. Please note that the daily chart has produced a bearish evening star candlestick pattern, indicating a potential change in trend ahead. It is also interesting to note that the indice has reversed from around the fibonacci 0.618 resistance zone, of the earlier drop from 11800 levels through 9300 during July-August 2015 (not seen in the above chart view). If the above wave count holds true, the next major move could be lower from here. Immediate resistance is seen at the 11,000 mark (interim), followed by 11,600 and higher, while support is seen through 10,700 levels and lower respectively. Also note that the RSI had already reversed from 70 levels earlier, favouring the bearish setup.
Short now, stop above 11,200 levels, target is open.