GER30 (DAX) has been consolidating itself within the extended range bound levels after reaching for new highs at 16032, followed by a bearish correction in interday time frames towards 15619 and 15727. The exponential moving average 50 in daily and exponential moving average 200 in four hourly chart has been acting as a strong support to GER30 (DAX) - preventing the indice from completing a bearish correction of higher degree. In our previous analysis published on 21st Aug we anticipated that the the relative strength index in weekly was trading near 70 with divergence being formed  - indicating that the bears will be incharge of the market for a while which provided a small bearish move towards 15692 and 15683. Secondly GER30(DAX) had entered the ichimoku cloud in four hourly chart which showed that there still was  bullish momentum which could pull the indice towards 15910 before moving any lower 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

We noted15858 price action as a major resistance level which if broken - would become a resistance turned support and create hawkish strength to GER30(DAX) - pushing it towards its highest highs i.e 16030 and that is exactly what the market did. Observing the current market structure and the support found above the interday exponential moving averages, GER30(DAX)  will be going to retest is yearly highest highs at 16032 again and if this level is broken, we will be witnessing new highs being formed at 16231. On the bearish side, we would need a bearish impulsive closing below 15599 to pull the pair towards 15360 and 14990 to complete its bearish corrective structure. 15422 has our 50% fibb retracement level on four hourly charts highs and lows - which if the market reached and provided a bullish closing above, would indicate the continuation of bullish trend. 

GER30 (DAX)

Sep 07 2021

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