DAX - break below key supports at 12900 zone signals further downside

Slobodan Drvenica Windsor Brokers

DAX

DAX is in firm bearish mode and accelerated further down after opening with gap lower on Wednesday.
Fresh strength of the Euro keeps the index under increased pressure as today’s weakness broke key short-term supports at 12906/12892 (25 Oct trough / Fibo 38.2% of 11862/13530 ascend).
Close below here would generate fresh bearish signal for extension of pullback from 13530 (07 Nov all-time high), as formation of daily Tenkan-sen / Kijun-sen bear-cross additionally pressures the price.
Next support lies at 12803 (55SMA) with further bearish acceleration capable of travelling towards 12666 (top of rising daily cloud / 138.2% Fibo projection of the downleg from 13530).
Bears could be interrupted in coming sessions by corrective action on oversold studies.

Res: 12906; 12991; 13104; 13186
Sup: 12842; 12803; 12753; 12666

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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