DAX: Support line comes in at 10370

Carol Harmer Charmer Trading

SUPPORT: 10370 10320 10262/50 10160 10070

RESISTANCE: 10455 10535 10560 10610 10675 10705/15

You can see where we hit the support line at 10385 yesterday and we have bounced...Today that support line comes in at 10370....so we really must take care...If we cannot break above 10455/60 when Cash opens it will send another weak signal to the market and we should then see the sellers back in control driving the market lower....Our stochastics after yesterday are beginning to turn lower so we do need to watch this closely as FTSE has already turned...

This is not to say the uptrend is over but it is saying that we should take care and watch the topside looking for clues as to whether it is going to break...we will know soon enough on the open..Now if we fail to make any headway topside there is still this trendline of 10370 calling...A break below here makes Dax even more negative and we would then be looking at further weakness leading to 10270/50...This should hold initial attempt...but again be wary...I would cover shorts...but wait until we see it stabilise before going long...Now a break back above 10455/60 does see upside pressure kick in and we then see 10535 to 10560 as a viable upside target.

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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