DAX Technical Analysis for November 12, 2015
Posted by FXTimes in Featured - November 12th, 2015 8:12 am GMT
A 4H chart has been again presented here, in continuation to previous discussions. Please note that DAX had broken below the immediate trend line support that extends from the October 02 2015 lows. Furthermore, the indice has rallied back up, (a probable correction) and hit the back side of the same trend line which is resistance now. Also, a clear engulfing bearish candlestick pattern has appeared after it hit, the fibonacci 0.786 resistance (of the drop from 11,051 to 10,720 levels) around 10,980/90 levels. Looking into the wave structure, it looks that the drop has been corrected around 10,980 levels and an extension could be underway towards at least 10,540/50 levels in the coming days. Bears are expected to remain in control till 11,051 resistance holds good. Immediate interim support is seen at 10,720 levels and a drop below, would accelerate further.
Short now, stop at 11,100, target 10,540.