Dax collapsed again to bottom at 8350. Unfortunately I called the low for the bear move a day early. I do still think we have just witnessed the end of
Dax December contract Daily Forecast - 17 October 2014Dax collapsed again to bottom at 8350. Unfortunately I called the low for the bear move a day early. I do still think we have just witnessed the end of the 4 week 15% crash. We rode this move all the way down & I warned very clearly that this was expected over 2 weeks ago. *It is now too risky to run shorts.* I expect a strong recovery in to the end of the month before another big drop in to year end. We switch our strategy to buying in to weakness. A return to 8475/55 is a buying opportunity, but if this fails look for the next buying opportunity on a move towards yesterday’s low at 8375/50, with stops below 8300.
Today we should start the recovery & need to beat immediate resistance at 8585/90. Be ready to go with a break higher to target 8670/80 then strong resistance at 8715/25. A high for the day expected here but shorts need stops above 8760. Go with a break higher using 8735/25 as support for a move towards resistance at 8840/50.
FX Empire editorial team consists of professional analysts with a combined experience of over 45 years in the financial markets, spanning various fields including the equity, forex, commodities, futures and cryptocurrencies markets.
