GER30 (DAX) has made a sharp bullish rebound from our major support zone that lyes between 50% and 61.8% fibo retracement levels at 14891 and 15107 prices. The aforementioned price actions have been emphasized upon in our previously published analysis as well; focusing on the authenticity of the price actions and liquidity present in our major support zone - will determine the long term trend on the GER30 (DAX). The exponential moving average 200 on the daily chart acted as another barrier in the way of bears from avoiding the market to fall any lower while marking the end of the bearish correction for now.  GER30 (DAX) was provided an upthrust with the help of fundamentals, "In its latest report, the German Economy Ministry said that it expected a significant GDP increase in the third quarter of this year, courtesy of the growth in the services sector", and currently trading above the exponential moving average 50 in the daily time frame. However, the upper trend line and the ichimoku cloud near our major resistance 15800 are also not letting GER30 (DAX) to achieve more gains by rallying higher. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the bullish side, as long as the GER30 (DAX) stays above our major support zone that lyes between 50% and 61.8% fibo retracement levels at 14891 and 15107 prices, we can expect the market to move higher but will face resilience from our upper trend line and the ichimoku cloud near our resistance at 15800. The aforementioned barriers, proceeded by the yearly high at 16034 needs to be broken for the confirmation of long term hawkish rally. On the bearish side, GER30 (DAX) needs to break below 14891 i.e 50% fibo retracement level with a strong dovish impulsive behaviour - that would open doors towards further losses and targeted destination at 14670 and 14407. 

DAX Rebounds From Major Support Zone

Oct 20 2021