Technical Analysis for Friday 14: DAX on Crucial Support

It will be fair to say that everybody is waiting for the new all-time highs on SP500. We are so close, almost there. Europeans don’t want to help in making that happen though as the price fell sharply at the beginning of the session on the Old Continent. I am not sure, what plan they have but one thing comes to mind: another test of 12800 on DAX.

12800 on DAX is absolutely a crucial long-term support, which holds the bullish dream alive. As long as we stay above, the buy signal is still ON. So far, so good as today’s test is successful till now for buyers as we do have a bounce, we will see if that will hold till the end of the week. One thing can be a huge obstacle here and this is a flag formation, where we had a bearish breakout, which in theory gave us a sell signal. In the end, it comes to the strength of both events. I think, that price being above 12800 is as for now, more important and relevant.

If we talk about strong horizontal supports, we need to mention EURPLN, which may be exotic for You but is extremely technical, so in consequences, enjoyable for trading. Here, the price is in the long-term horizontal support on 4.4. Exactly on this support, we have a small rectangle pattern, so the breakout should definitely show us the direction. Price going above 4.425 will be a buy signal and price dropping below 4,39 will be a signal to sell.

We have to mention Gold as the situation here is very interesting. XAU experienced a major reversal and then a correction. Correction is a pure wedge and we already broke its lower line. Breakout of the lower line of this pattern gives us a proper sell signal, so in my opinion, we should see another leg down.

For a look at all of today’s economic events, check out our economic calendar.