Dax index is trading around 15,860. The last 3 daily candlesticks have long lower tails suggesting that buyers step in when price approaches 15,700. Although price has broken both upward sloping support trend lines, these three candlesticks suggest that a bounce higher is very possible. Possible bounce targets are these broken support trend lines. We could see a back test from below. So our first bounce target is at 15,950 and the second target at 16,080. Short-term support at 15,700 if broken will provide a bearish sign, implying more downside should be expected. Medium-term support remains key at 14,600
The material has been provided by InstaForex Company – www.instaforex.com
Blue lines- support trend lines
Yellow rectangle- major support
Dax index is trading around 15,860. The last 3 daily candlesticks have long lower tails suggesting that buyers step in when price approaches 15,700. Although price has broken both upward sloping support trend lines, these three candlesticks suggest that a bounce higher is very possible. Possible bounce targets are these broken support trend lines. We could see a back test from below. So our first bounce target is at 15,950 and the second target at 16,080. Short-term support at 15,700 if broken will provide a bearish sign, implying more downside should be expected. Medium-term support remains key at 14,600
The material has been provided by InstaForex Company – www.instaforex.com
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