So we seem to finally be in a corrective phase, how long will it last and where will we head before moving up again? I mentioned on Monday that a decent level to pullback to would be between the weekly S1 and weekly S2, we fell just short of the weekly S1 on first attempt and have bounced from the daily S1. Here is a picture of Monday’s prediction.
Lets take a look at the levels and charts.
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Support & Resistance
|34 Hour EMA||11342||32|
|200 Day EMA||9934||47|
Dax Daily Chart Analysis[wp_ad_camp_1] It has been on the cards for a while, but the pullback is now looking like a healthy correction. Both the fork and the channel are still intact and RSI is back into the low 60s. The median line of the fork could be a target with 11k being the next target. If this is the start of a much deeper correction, which I am not sure it is, then a break of 11k could open up 10500 and possibly the 10286 again.
Dax Intra-day Chart Analysis
The 4hour chart had a rising wedge formation which has broken to the downside and you could definitely argue that this is a technical pattern pointing to a bearish reversal.
The 30 minute chart shows the channel break to the downside, with the 34-hour EMA pointing down and a loosely defined pin bar only an hour or so ago. it seems we are testing the previous low from last night and a resumption of the pullback could continue from there. If we climb higher than that, we could test the weekly pivot or the psychological 11300. To the downside the weekly S1 is 11168 and weekly S2 is 10952. There is a lot of support in between us and S2 so I would be really surprised if we got down there.
On the 1 minute chart below we have start to build some support on the S1 after initially piercing it but being rejected. A mini retrace of the swing down gave a 50% level around 11261 which is holding for now, but will be retested no doubt. If we pass the 11276 level then I will be watching the 11300.
My volume profile indicator is not working today, I will fix it and be back tomorrow with a chart.