This week Index starting from another test.
Most of questions will get sorted in first hours of trading so lets check that later. There is chain of day trade setup which will follow.
We looking for clues about direction for now.
Price action around downtrend line, DAX sinking under it will create another lows test, with enough strength – dip under 12k mark
Ultimate target around 11730 resistance, price sorting that open gap and resetting that range.
Buys setup on breakout, with price remounting previous support trend line
Rally can get suppressed by resistances – 316, 350, 420, 460 so without power buy we will get choppy action.
Good target is 12630/50 – closing gap left behind this sell off.
I think we will see more in early hours of trading or during Monday open session in Asia
Price rally towards previous support trend line but declined from 350ish near resistance
Right now we can look for :
price finds support at channel or dip to near EMA 100 / (valid until today lows safe eg. higher low) and continue on rebound
Fall towards downtrend line resetting rally completely
Update – end EU session :
Price tested but didn’t make thru 365 resistance
Still we had good cash close with price at 330, that can extend rebound further
New gap :
Price went to 420 on solid rally today morning.
Right now we have 2 main setups:
- pull back to early 200 to close recent gap
- continue on rebound after maybe some turbulence / consolidation with targets 480/520/630.
21th End of day
DAX found sellers at 430
Right now upside getting more limited, maybe some wild rally on China & US trade meeting can change situation.
More likely we just saw some profit take after recent sell off and rally will end same way as most hype drive action, where it started or lower.
Watch action on trend lines and support / resistance levels
Key resistances: 430 and 530/70
Bullish action / rebound continuation
Keep eye also on MA 100/200 1h in case some support for extend rebound
Also early 12200/190 – another August higher low
Update 22th August – end of day
DAX tried challenge again key resistance at 12430.
Over night trading push price to lower 12300ish but Index come back to week highs on solid rally at EU open.
We will be watching now for final push and clearing out 430 and 450 to open path towards 12630 gap mention at beginning of this post
DAX failure to remove 430 resistance and collapse under selling pressure below 12300 – towards 12220/140
All ready declining from 420 and 400
Update 23th – noon
DAX follow nicely ma 50 (1h) for good few days but now getting “tired” to support price above
Supporting price create cross in 100/200 MA
Right now will be looking either for bounce from ma 100 and rally above 430 or decline
Bit slow action so far but this will happens today / tomorrows and determinate trading for following week
Price tested trend line and again declined sharply from 430/50 resistance
After week long consolidation we still need to wait for results
Technical resistance/support points: (19th Aug)