DAX Might Push Below 11600 Near Term

22 September 2020

DAX Spot had reversed sharply yesterday and managed to close around 12540 levels. Bears might be poised to push lower towards 12200/50 levels, the next in-line support. We can expect a pullback rally thereafter. The indices remains good to be sold on rallies going forward.

DAX probable medium term wave structure is as follows: The indice has managed to hold classic Elliott Wave structure 5 Waves Down, followed by 3 Waves Up. It had dropped between 13800 and sub 8000 levels, sub dividing into 5 waves.

Further, the corrective rally towards 13400/500 was in3 waves. If the above proposed wave structure holds true, DAX should ideally remain below 13800 and turn lower towards sub 8000 mark sub dividing into another 5 waves. This would complete a 5-3-5 wave structure going forward.

Looking into the short term wave structure, the drop from 13500 through 12700 could be lower degree Wave 1 on the chart. The subsequent counter trend rally towards 13300 could be marked as potential Wave 2. If the above holds true, Wave 3 might have resumed lower.

Immediate resistance is seen towards 13500, followed by 13800, while support is seen around 12200, followed by 11600 respectively. A push below 12500 from here would confirm that bears are in control and DAX should accelerate towards 12200 and 11600 over the next few trading sessions.

Traders might be preparing to hold short positions with protective stop above 13800 and projected targets below 12200, 11600 and beyond.

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