Bottom line:  DAX bearish structure is expected to hold until prices stay below 13800 mark. Bears have managed to test support at 12982 for now. A pull back rally can be expected before the drop continues.

Technical Analysis:

DAX had reversed sharply as discussed and expected over the last week from 13800 through 12982 levels respectively. Bears have remained shy by just a few points from breaking support at 12973 for now. The drop might continue further but a pullback rally is expected before turning lower again. The recent drop could be seen as the first leg of a major reversal ahead or a triangle termination before the thrust rally ahead. In either case, a counter trend rally is expected towards the 13500 region before deciding the next move. Traders who went aggressively short last week might be looking to book profits around current price action (13000/50) levels. Furthermore, aggressive traders might be willing to take long positions now, with protective stops below 12973 and potential target towards 13480/500 respectively. If the current drop is Wave 1 of a bearish reversal ahead, Wave 2 is expected to terminate around 13500 levels, before Wave 3 resumes lower again. We would review the situation again around the Fibonacci 0.618 retracement at 13480/500 levels. Looking at the larger wave counts, DAX had produced a 3 wave drop between 13596 and 10279 levels earlier. This was followed by yet another 3 waves rally towards 13800 levels. The entire structure could be a part of an expanded flat or a combination, at one larger degree. In case of an expanded flat, we could witness a 5 wave drop towards 10200 levels at least. Either ways, top side remains limited and ideally DAX should stay below 13800 levels going forward. Watch out for a pullback rally to materialize soon.

Prepared by

Harsh Japee, Technical Analyst.

DAX Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。