Long week consolidation did not help buyers to break out from sell pressure. Price reach second time 12460 resistance and create double top.
Italy budget plan published at Thursday force traders to retreat from highs and DAX end week at 12220.
In previous week chart, pointed 12220 and 12100/50 as levels where buyers have to step in to create any chances for rally to extend higher. So we will be watching that levels closely.
Buyers: will be trying to hold price fall all ready at 12200+ level but if fails here next turn point can be somewhere between 12100/50 in order to set higher low. Buyers could use some good news to help get momentum.
targets from 12220/100 – 12530 and 12600 in extension
Sellers will be trying cap attempts to turn around direction and don’t let consolidation / pullback go above 12300/50 that price is good zone where shorts can get reload for next leg lower. Second option is continuation of flush without pullback. We will see this more clearly after Monday open during Asia session and first hours of trading in EU
targets from 12200/300 – 12050 and 11880 in extension
Strong sell off can set DAX on path further down, where erase September rally and setting new low will open path to targets 11730 / 500 and in long term drop to lower trend line in this channel presented on chart below. That will be price levels not seen since beginning of 2017
Resistance and supports: