I was bearish DAX yesterday (tradingview.com/chart/DE30EUR/xdy2bqd1-02102023-DAX/) despite the opening gap up and it played out well; market played out almost as per the path, coming down to bottom of PZ, rallied up to above double resistance before a sell down. Probably, what is somewhat surprising is that, despite the up move in SPX (led by NDX, DJIA was weak) DAX was much weak too.
Overall, I would say that DAX is weak. And if we are looking at price action, what happened is, price sold off rather deeply, hit the bottom of the Bollinger Band for days, then found support, rallied for 1-2 days, found sellers and sold back down, with space now for further down side.
But again, I would say that the speed of the sell down is a bit too steep; yesterday's down move brought price directly back to the bottom of the Bollinger Band again, in which, having another bounce is not surprising. And also, one thing to note is, sellers have yet been able to bring DAX below last week's low though.
For today, if following the trend, I would say to continue to look for downside with bearish price action and the zones above as resistance. 15282 should be a good max level to look for short for a move to 14986 strong support and 14900. If 14900 trades, will be glad to look for longs for a good bounce.
Overall, I would say that DAX is weak. And if we are looking at price action, what happened is, price sold off rather deeply, hit the bottom of the Bollinger Band for days, then found support, rallied for 1-2 days, found sellers and sold back down, with space now for further down side.
But again, I would say that the speed of the sell down is a bit too steep; yesterday's down move brought price directly back to the bottom of the Bollinger Band again, in which, having another bounce is not surprising. And also, one thing to note is, sellers have yet been able to bring DAX below last week's low though.
For today, if following the trend, I would say to continue to look for downside with bearish price action and the zones above as resistance. 15282 should be a good max level to look for short for a move to 14986 strong support and 14900. If 14900 trades, will be glad to look for longs for a good bounce.
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Join me for free on Patreon (patreon.com/fademeifyoucan) to receive my daily FX and indices trading plan. DM me to join my new group to learn all my trading levels and to trade together.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.