Tuesday, March 1, 2016

DAX30: indicators give buy signals

On the hourly, 4-hour and daily charts of the index DAX30 индикаторы OsMA and Stochastic recommend to open long positions. On the weekly chart the indicators also give signals to buy.

On the daily chart the price has broken down the upper limit of the downward channel, (where the price has been since December 2015) and resistance level of 9440.0 (Fibonacci 23.6%).

Consolidation of the price above resistance level of 9680.0 (ЕМА50 on the daily chart) and 9810.0 (Fibonacci 38.2%) will accelerate upward dynamics and the index DAX30 might reach resistance level of 10120.0 (ЕМА144 on the daily chart and Fibonacci 50%) and 10275.0 (ЕМА200).

The rise above these levels is unlikely due to downside risks caused by the slowdown of the global economy and instability of the financial markets. Efforts of the Central bank will not be sufficient to change negative dynamics of the stock markets.

If measures adopted by ECB will be insufficient, the price will go back to the downtrend. Breakdown of the level of 9440.0 (Fibonacci 23.6%) will bring the price back to the downward channel on the daily chart with the bottom limit below the level of 8300.0, which is close to the lows of September 2014.

Support levels: 9440.0, 9400.0, 9300.0, 9200.0, 9150.0, 9100.0 and 9000.00.
Resistance levels: 9680.0, 9750.0, 9810.0, 10000.0, 10050.0, 10120.0 and 10275.0.

Trading tips


Buy Stop: 9710.0.
Stop-Loss: 9610.0.
Take-Profit: 9750.0, 9810.0, 9900.0, 10000.0, 10120.0 and 10275.0.

Sell Stop: 9410.0.
Stop-Loss: 9510.0.
Take-Profit: 9350.0, 9300.0, 9200.0, 9150.0, 9100.0, 9000.00, 8800.0, 8700.0 and 8600.0.