Dax retests strong support at 11420/350 in oversold conditions

Dax

Dax 30 December head & shoulders plays out perfectly as we hit targets as far as 11600/570 & bottomed just 24 ticks from the 11420/370 target. A potential 900 ticks profit this week.

We held the strong support level for a bounce to 11600/640 but then topped half way to 11740/760.

Daily Analysis

Dax retests strong support at 11420/350 in oversold conditions. There’s a 4.5 year trend line offering further support at 11300/280 so a break below here is a very important longer term sell signal. We could easily fall another 100 points but initially we target 11140/120 then 11030/11000, perhaps as far as 10900/850.

Holding above 11450 today is more positive & allows a recovery to 11650/700. A break higher targets 11800/820, perhaps as far as a selling opportunity at 12050/12100.

fxsoriginal

Chart

DAX

Leave a Reply

Your email address will not be published. Required fields are marked *