By Anton Eljwizat – The DAX 30 Index has been in a downward trend throughout the past week, dropping from 6180 to as low as 5690. Last Friday, however, saw the beginning of an upward correction, a trend that is expected to continue. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal.
• Below is the 8-hour chart of the DAX Index.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and MACD.
• Point 1: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.
• Point 3: The MACD indicates an impending bullish cross, signaling that the next move may be in an upward direction.
• The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue.
DAX 30 Index 8-Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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