DAX 30 long upward trend, medium term trend correction is in force with ABC formation. Still the C wave is in force, which makes us slightly wary of a new bearish momentum towards the area of purchasing and diagonal support of the trend. It is likely in the next few minutes to see the short signal rise if the price crosses above the average of the negative bar, ie over 9678, where the long is a appropriate.
Of course the purchasing area is designated for long-term and medium-term positions on the Daily chart. The zone is defined on the diagonal support trend following corrective ABC formation. This is the place for long, with the best risk – profit ratio.
Double bottom? It is still too early to answer this question. The current levels are now over 9614, which increases the risk of the long positions. The current price is below the middle of yesterday’s bear bar, which now gives us no reason for long positions. Only if the price passes over t 9678 it will show strength of the bulls and it give us а reason for buying with a stop below the double bottom. We expect price growth after the easing of the tension around the Malaysian plane.
Though the price is over the purchasing area, it is close to 9614 – The support levels are suitable for purchases with a close stop.