DAX: Short-term Trading Levels to Watch
- DAX quiet past two sessions
- Big picture trend is higher, short-term neutral to lower
- Short-term top and bottom-side trading levels
Over the past 48 hours the DAX has been relatively quiet, currently trading only about 10 points different than where it was this time on Wednesday. The plunge off the January highs was sharp, but not overly concerning just yet. The big picture trend is higher on the daily, while the short-term trend off the highs is neutral to bearish.
The other day we said the market needs to soon turn up, or else faces further downside risk. That sentiment stands. The market is pausing for now, but after every pause comes a move.
Looking at the short-term (1-hr chart) there are some levels we can operate off of for further clarification. On the down-side there is a trend-line beginning to develop since the first day of the month, but should it fail we will look to our first level of support at yesterday’s low of 11604, and on a break below we will have our eyes on the Wednesday gap down to 11560. Below the Jan 31 low we will look to 11509. The big area of support to watch comes in around 11405/25, bottoms to pullbacks in December and January.
If the market can kick into gear, on the top-side we have a trend-line running lower off the Jan 26 high which the DAX just ran into this morning. Beyond there the first level of resistance clocks in at the 2/1 high of 11723. A break above there doesn’t give the all-clear for the market to trade higher, but no substantial resistance to speak of exists until the Jan high of 11893.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.