This is my short term DAX price action guesstimate.
RESISTANCE: 9330 & 9400 SUPPORT: 9200
9200 is quite obviously a super important support level for the short term! It might also hold if rebounds are not only short cover bounces but actually investors being bullish and loading up longs. IF however, the bounce is only or mostly short covers, we are SOL (Shit Out of Luck) and this will continue south.
Sofar this is a double bottom in play until proven otherwise I'd say. BUT if I had to guess, I'd guess on another wave down before DAX bottoms mid term. But let's see what mr. Market is planning ahead.
GL and remember to use S/L!
Kommentare
AamirAnsari
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Hi nice chart. Are you predicting it will further go down to the level of 8800?
christian.langfors
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Hi, thank You! I have no clue to be honest; if 9200 breaks down, it might be very ugly (read massive panic sell that leads to margin calls and what not).
The ultimate price movement though, would be a re-test of the tops in 2000 and 2008 (that is 8000-ish) and then major rebound from that level. I think this week could tell better what to expect from the near future (i.e. what are the institutional investors thinking?). If we close this week and this month at this level, the monthly candlestick will be ugly. Compared to similar price action events, the next month(s) were not bull friendly.