DAX - what are the possible price outcomes

If we are looking at Daily chart we can see distinctly expressed ascending trend, which ended with the forming of lower top from 19.12.2017. The price tested a few times the horizontal support matching with FiBo 38.2.. for the moment unsuccessfully. For the moment we don't have closed candle below the zone of support, which indicates that the downward momentum isn't strong enough. The price dropped to diagonal support of the short-term downward movement and again bounced back.

In the price pulls back above 38.2 will make fake break out of the supports which will give us reason for long position with 1st target around the upper diagonal resistance of the descending channel.

If the price breaks below the zone of support and break support of the descending channel, short positions are more logical. Then our 1st target will be around SMA 200 and FiBo 61.8.

For the moment the price remain above SMA 200, which indicates that the bulls are still in control of the situation. However the technical indicator shows different picture. DeM(14) - if the oscillator breaks below level 0.3, the negative sentiment will increase.

Trader Bozhidar Arabadzhiev

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