DAX: Strong correction. Two support levels.

DAX is on a strong correction (short term for the time being) with the 4H Channel Down (RSI = 38.828, MACD = -65.800, Highs/Lows = -254.2571) approaching the 12,945 - 12,885 1D Support Zone. On the short term our 13,100 Target on the previous sell call has been hit:


Right now we are focusing on where the Support levels are on this strong correction, and where is most optimal to buy. As long as the short term 12,945 - 12,885 Support Zone holds, we can expect a bounce any time now as the -5.00% correction is completed which is the norm on a medium term basis (happened in October 1st, 2019).

If 12,885 breaks though, then the correction will follow the longer term norm of -10.50% (happened in late July, 2019). As a result in that case we will wait for contact with the 1D MA200 (orange line) and buy for the long term. The Target will be at least 13,640.




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