4 observations from this DAX30 weekly chart
- Four weeks ago at the height of April, DAX30 tested it’s year open as a resistance. Outcome: still resisted. Which means that DAX30 will likely stay in the negative unless 10470 is overcome.
- Last week, it broke below 10098 and last night, DAX30 tested it again. There are two important implications here. A) 10098 was 2014-high. With this level as valid resistance, it means that all of last year’s gains above this level is not going to come back anymore. B) Coincidentally 10087 was May’s opening level. At this moment, DAX30 is negative for the year and concurrently down for the month, a double bearish sentiment.
- The index is perched on a trend line. Breaking the trend line may be a somewhat bearish signal.
- If all the above indicates that DAX30 is done testing overhead resistance and failing, then the logical next stop is to find support which opens way to next level. Possibly former 52-week low at low of 2015.
This is an additional confluence with the discussion here posted on 09 May.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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