We are starting to see Dax slowly recover from its selloff from 12.4k. Target 1 which I posted on a previous chart was hit to the T. Currently price is consolidating within the box range, Target 2 still valid only if Inner TL holds. Expecting it will.
The primary TL is drawn from the previous years October selloff and represents strong support, if it holds I'm aiming for 13200, if it breaks expect a big sell off with first target at 11200 followed by a correction to 10000.
If you haven't noticed Dax is correlating strongly with EU at the moment, and whether or not the Primary TL holds or breaks could well be determined by the direction of the Euro and the US Dollar. Weak Euro; Dax bounces off of TL and moves to higher highs, strong Euro The TL breaks and Dax has a further correction.
The key area for me is obviously the Primary TL, I will be using EU analysis as an added confluence if and when price arrives near the TL, to help decide on a position.
The primary TL is drawn from the previous years October selloff and represents strong support, if it holds I'm aiming for 13200, if it breaks expect a big sell off with first target at 11200 followed by a correction to 10000.
If you haven't noticed Dax is correlating strongly with EU at the moment, and whether or not the Primary TL holds or breaks could well be determined by the direction of the Euro and the US Dollar. Weak Euro; Dax bounces off of TL and moves to higher highs, strong Euro The TL breaks and Dax has a further correction.
The key area for me is obviously the Primary TL, I will be using EU analysis as an added confluence if and when price arrives near the TL, to help decide on a position.