DAX Long Term Resistance Remains Around 13800

28 July 2020

DAX might be ready to plunge lower towards 10160 initial support in the near term, as bears might be preparing to break below the counter trend line support. The indice had managed to carve a lower high around 13300 on July 21, 2020.

DAX has reversed lower since the 13300 highs and is seen to be trading around 12800 mark as we prepare to publish this update. A push below initial support around 12500 will confirm that the indice has carved a lower top at 13300 levels.

DAX probable wave counts are as follows: The earlier drop from sub 13800 through 8200 was in 5 waves, making an impulse drop. This is labelled as larger degree Wave (1). An impulse wave is normally followed by a corrective wave.

DAX had rallied from 8200 levels since March 23, through 13300 levels as a corrective zigzag, labelled as A-B-C, potential larger degree Wave (2). If the above counts hold well, DAX could be underway towards 8200 as Wave (3) unfolds.

Ideally, the indice should stay below 13300 levels going forward. Please note that major resistance remains around 13800 and DAX is bearish until prices stay below that mark. A break below the counter trend line support will accelerate the drop.

Most traders might have initiated fresh short positions around 13000/200 mark, with protective stop above 13800 levels and projected targets below 10150, 9000 and 8000 respectively. Only a break above 13800 would delay matters further.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In