• Dax index reversed from resistance area
• Likely to fall to support level 14835.00
Dax index recently reversed down from the resistance area lying between the pivotal resistance level 15520.00 (former monthly high from April, top of wave 1) and the upper daily Bollinger Band. The downward reversal from this resistance area created the strong daily Japanese candlesticks reversal pattern Evening Star, which started the active short-term correction 4.
Given the strength of the aforementioned resistance area and the deterioration in risk sentiment seen across the equity markets today – Dax index can be expected to fall further toward the next support level 14835.00 (low of the two previous short-term corrections from the start and the middle of May).