By Anton Eljwizat
DAX 30 rose significantly in the past month and peaked at 7440 level. However, the daily chart is suggesting that a recent upwards trend is loosing steam and a bearish correction is impending. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• Below is the daily chart for DAX 30 by ForexYard.
• The technical indicators used are the Slow Stochastic, MACD and Williams Percent Range.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Williams Percent Range has peaked near at the 0 marker, which means that there may actually be a strong level of downward pressure.
• Point 4: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
DAX Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
