German Dax approaches 100 day MA and swing area
The German Dax trended lower this week after reaching an all-time high last week at 16427.42.
The move lower this week reached a low (today) at 15733.12. That low is getting closer to the rising 100 day MA at 15665.44. The low was still 68 points away, but be aware, be prepared.
As a guide, the price traded last below the 100-day MA back on March 20. However, the price snapped back higher and closed above that level. You have to go back to October 24 for the last time, the price of the German Dax has closed below the 100 day MA.
So next week will be key. Move below – and then the low of a swing area down to 15629.12 (see red numbered circles on the chart above) – and more downside probing can be expected.
Conversely, for bulls/buyers, this area is a level to lean against as risk can be defined and limited to a break below the 15629.12 level (at least in the short term).
Traders will have to wait until next week, but the market is at a crossroad technically.
