DAX daily Imbalance

Chart Structure & Pattern
The DAX was previously moving within a clear ascending channel, indicating bullish momentum.

A breakdown of this ascending structure has led to a sharp selloff.

Price is now reacting to strong historical demand zones, marked by purple horizontal boxes.

📉 Price Action & Market Behavior
Current price: 19,988.34 EUR

There was a massive drop from the highs around 23,000 EUR to nearly 18,000 EUR.

Today’s candle shows a strong bullish wick, suggesting a bounce off the 18,800–19,200 support zone.

Volume is extremely elevated, indicating capitulation or aggressive repositioning.

📊 RSI (Relative Strength Index)
Current RSI: 27.52 — deeply in oversold territory, which often precedes short-term rebounds or consolidation phases.

If RSI crosses back above 30, that could be a buy trigger for counter-trend traders.

🔍 Key Levels to Watch
Immediate Resistance:

20,800

21,200

Support Zones:

19,200 – 18,800 (currently bouncing from here)

18,000 – 17,600 (next level if current support fails)

📈 Trade Setups
1. Short-Term Rebound / Relief Rally (Bullish Idea):

Entry: Around 19,900–20,000 (after confirmation of support holding)

Target 1: 20,800

Target 2: 21,200

Stop Loss: Below 19,200

2. Bearish Continuation (If support breaks):

Entry: Break below 18,800 with volume

Target: 18,000

Stop Loss: Above 19,300

🧠 Summary
The DAX has sharply broken its bullish structure and is now in a correction phase.

Current bounce from oversold RSI and support zone may give a temporary rally.

However, the overall trend has shifted bearish, and a lower high or failed bounce could trigger further downside.

It's a key inflection point — great for active traders watching for a bounce vs breakdown confirmation.