DAX When Resistance should became a support
This is a big picture scheme about the State of Play with regard DAX. When trading on a daily basis, we may forget the big picture.
As a reminder, if one look at the last 5 years, DAX did classical move, even when you do include the crises period.
The very mechanical move of DAX suggest that The level of Pre Crises was a resistance. After the crises, and with QE, Monetary easing policy ECB accomodation, DAX went up like a rocket.
In order to have a healthy growth and picture, The former resistance which was at around 8150 should became a support level. DAX's All time high is around 9810, 9793 and 9789. Many attemps towards that level but it has not been broken yet. Which menas that by the time, that level became a resistance level. It is still a weak resistance, but for a healthy growth of the index, and baring in mind the mechanical reaction of DAX to the market situation, there should be a move back toward 8490-8150. If the level became a comfortable support and genuinly tested, then we can expect another healthy move of the index upward. Otherwise, If it goes more and more up, it will crash more and more on the downside.
As a reminder, if one look at the last 5 years, DAX did classical move, even when you do include the crises period.
The very mechanical move of DAX suggest that The level of Pre Crises was a resistance. After the crises, and with QE, Monetary easing policy ECB accomodation, DAX went up like a rocket.
In order to have a healthy growth and picture, The former resistance which was at around 8150 should became a support level. DAX's All time high is around 9810, 9793 and 9789. Many attemps towards that level but it has not been broken yet. Which menas that by the time, that level became a resistance level. It is still a weak resistance, but for a healthy growth of the index, and baring in mind the mechanical reaction of DAX to the market situation, there should be a move back toward 8490-8150. If the level became a comfortable support and genuinly tested, then we can expect another healthy move of the index upward. Otherwise, If it goes more and more up, it will crash more and more on the downside.
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