SUPPORT: 8122 8100 8089 8027.5 7980.5 7922 7874 7835 7815/12 7753
RESISTANCE: 8164 8198.5 8222.5pp 8251 8296.5 8204 8308pp 8347 8371.5* 8411/14
Yesterday Dax gapped up on the open and made a high of 8237 before trading lower with the rest of the indices, making a low of 8052 and closing at 8111. The 60 mins stochastics have turned bullish but are midway and the 240 mins are diverging giving us a strong buy signal and daily stochastics are in oversold territory but not yet crossing. We have divergence on the weekly charts giving us a strong sell signal but have been like this for a couple of weeks now. Therefore we could trade higher this morning, and we should sell into strength.
We have resistance at 8164 this is the short term 23.6% fib level a break here will take us higher to the downward trend line evident on the hourly charts at 8198.5, attempt shorts here with a stop just above the pivot point at 8222.5
Our first support is 8122 below here we have 8089 this was a previous high which we broke up from then below here we have yesterdays low at 8052. A break here will take us lower to the 55 day MA at 8027.5 cover shorts here.
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