German Dax Hits Resistance

The German DAX index found a strong resistance level represented by our target yesterday at the price of 15,660, which forced it to trade negatively once it hit it, to witness the current moves with a bearish bias around the lowest level during the session 15,608.

On the technical side, we notice signs of negativity starting to appear on the stochastic indicator, and this comes in conjunction with the negative signals coming from the RSI.

From here, and steadily trading below 15,670, the bearish tendency is expected in the coming hours, targeting 15,550, and breaking it will extend the index’s losses to visit 15,500. On the other hand, trading above 15,670 postpones the chances of a decline, and we may witness a retest of 15,730 and 15,790 before falling again.

CAUTION: The risk level is high.

S1: 15550	R1: 15670
S2:  15490	R2: 15730
S3: 15430	R3: 15790