DAX: Sharp reversal, negative daily charts can't be ignored

Carol Harmer Charmer Trading

SUPPORT: 10745/40 10705/10695 10650 10615 10550 10495 10385 10265/50

RESISTANCE: 10802 10825 10895 10940 11005 11055 11120 112

We had a sharp reversal in Dax yesterday after failing to make any headway on the topside....We did break 10802 but briefly and sellers were there with all their might to swat buyers out of the way and drive us lower...we ended up closing at sessions lows of 10761...now we are slightly up pre open today...but again I feel that any strength will be short lived and that the sellers are still waiting in the wings to come out and strike once ore...Daily charts are negative and this cannot be ignored...DAX had its chance to trade higher yesterday and failed dismally...and unless we can break and hold above 10825 the market will remain under pressure...I think that if you are joining this band of sellers you have be prepared to watch the market trade higher above 10802 which is where we will see the sellers back in force....we know support is down at 10745/40...we should see profit taking at these lower levels....Also we would see sellers back in the market if we broke the 10740 support...a loss below here would leave the market looking weaker still with the 23.6 med term fib of 10670 and chart support at 10650 looking to entice...Now here we should once more see profit taking but beware of a break below 10650...If lost the market should continue to fall with 10570/50 then targeted....We know the break on the topside...it is a hold and a close above 10825...Only then would the market actually look a little stronger with 10940 then the targeted area...This is not expected or anticipated...The market looks weak...so if you want to buy this..please be careful.

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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