European stocks lower

Dax Technical Analysis Report 03 November, 2020

  • Dax reversed from support area
  • Likely to rise to 12355.00

Dax under strong bullish pressure following the earlier sharp upward reversal with the daily Hammer from the support zone located between the powerful support level 11500.00 (former monthly low from June), lower daily Bollinger Band and the 61.8% Fibonacci retracement of the earlier sharp upward impulse wave C from the middle of May. The upward reversal from this support zone started the active short-term corrective wave (iv).

Given the considerably strong risk-on sentiment seen across multiple asset classes globally today – the index is expected to rise further toward the next resistance level 12355.00 (former strong support from September and October) – acting as the target price for the completion of the active wave (iv).


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