Indeks DAX

DAX - Falling Wedge

401
Price did not retrace as expected yesterday. We could see a dip (close) to 11256, following which price should break out to the upside to 11600. Divergence formed to the RSI as well so a test to 11600 is on the cards.

How price plays out from 11600 is anyone's guess. If it acts as resistance, we could see a decline back to 11256 and maybe a break lower. If 11600 gives way and acts as support 1200 - 12052 is quite possible.

Note that there is a larger falling wedge taking shape, and a break out will see perhaps the previous highs being tested.

Get clues from Dollar index (positive correlation) and of course EURUSD (-ve correlation)

Penafian

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