The DAX30 index is solidly trading below the downward trend line on a daily time frame. This confirms that the trend is skewed towards the downside. The price is trading well away from this trend line, but it has recovered half it loss from its recent low -with respect to downward trend line. The volatility for the index is low, as it is trading within the Bollinger band and close enough to its 20 day moving average.
However, the price is trading below the 50 and 100 day moving average (shown in yellow and red colour respectively) and break of the price above these averages and a crossover of the 50 and 100 day moving average from below towards the upside will be a strong signal of bull strength.
The RSI which is a momentum indicator is trading in line with the price action and this is a confirmation that the current price has a momentum behind it.
Important Zone
9920- 9775 Resistance
8856-8672 Support
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