The DAX index is showing a very interesting pattern on a 4 hour time frame. The price has clearly broken its upward trend line which confirms that the downward trend is in place. Moreover, the price is also trading below its downward trend line and as long as the price is trading below this trend line, the bias stays towards the downside. Further confirmation of the downward trend is coming from the 50 day (shown in yellow) and the 100 (day shown in red) moving average where the price is trading below them.
The RSI is moving in a sideways pattern as compared to the price action and this reflects that the downward move in the price action is not confirmed by the RSI. Therefore, we could see a little push back towards the upside before we continue our trend towards the downside.
Important Zone
9731-9662 Resistance Zone
9102-9045 Support Zone
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam