- October 1, 2021
- Posted by: Tradingshot Articles
- Category: Stock Indices
DAX hit today the 1D MA200 (orange trend-line) for the first time since November 04 2020, which was the period of the U.S. elections. That was at the start of a very aggressive end-of-the-year rally.
Right now the index is rebounding after having made a Double Bottom just below the 15040 Support. If we also consider the July 19 Low, then this can be treated as a Triple Bottom. It is possible to see a similar pattern as May – June 2021, which also rebounded after a Double Bottom, that time on the 1D MA50 (blue trend-line, which is the first Resistance) instead of the MA200. The RSIs of the two fractals are on Inverse Head and Shoulders.
The medium-term target is naturally the Resistance (16000), while on the long-term a price range within 16250 – 16400 as every previous Higher High since June has been near the 1.382 Fibonacci extension .