Dax is Looking For Extra Momentum

The German DAX index hit the vital supply area published during the previous analysis, at 16,290. We indicated during the last analysis that its breach is a condition of obtaining more rise.

Today’s technical aspect indicates the possibility of continuing the daily bearish trend. Still, with a closer look at the short time frames, we noticed some positive signs that started appearing on the stochastic indicator, in addition to moving above the 50-day moving average.

Therefore, we may witness a bullish bias in the coming hours, targeting 16,190 first targets, considering that the price stability above the mentioned target is a catalyst for the price to visit 16,290.

Activating the above-suggested scenario depends on the daily stability of the index price above 16,050. Its breakage is a signal to shift the direction to the target of 15,960 and extend towards 15,850.

Note: The level of risk is high

S1: 16050	R1: 16260
S2:  15960	R2: 16380
S3: 15845	R3: 16465