DAX30 Testing Channel Support

Good afternoon traders,

With a focus on the German DAX today, I’ve published today’s technical analysis blog a little later in the afternoon than normal.

Indices markets are something we’ve neglected over the last couple of months, but with the following daily channel in play, it can’t be ignored anymore:

DAX30 Daily:

Click on chart to see a larger view.

Now that price has just tapped the bottom of this channel for its third touch, we certainly have a higher time frame level in play.

Add the horizontal previous resistance turned support zone that lines up with the channel and we are looking to be in business:

DAX30 4 Hourly:

Click on chart to see a larger view.

Zoom in another level and the DAX intraday chart shows price reacting from this zone nicely. I’ve also included the short term, counter trend channel that price will look to break out of if it’s going to head higher from here.

With a higher time frame level looking like holding, there is definitely opportunity to get long off short term pullbacks on the intraday charts.

Best of probabilities to you!

Dane WilliamsForex Analyst

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Source: Vantage FX Blog