DAX correction
DAX after strong growth at the beginning of the year stopped at level 13,400 near the last peak at 13500. After two days of range movement (8th and 9th January) in the area of 13330 -13400, finally price went down to 12,200. This level was resistance and range upper band many times in the past. After broke out, it naturally became a support.
Another level where price may turn upwards is around 13,000. The round, psychological level in the recent past was also a point where price have been stopped. Of course, price could break 13,000 and go down even below 12740.
Looking at the DAX D1 chart, we can see that the price is drawing higher highs and lower lows creating Broadening Formation. If today's candle will close above 13,200 and tomorrow session will be bullish, there is a high probability of an attack of 13500.
Another level where price may turn upwards is around 13,000. The round, psychological level in the recent past was also a point where price have been stopped. Of course, price could break 13,000 and go down even below 12740.
Looking at the DAX D1 chart, we can see that the price is drawing higher highs and lower lows creating Broadening Formation. If today's candle will close above 13,200 and tomorrow session will be bullish, there is a high probability of an attack of 13500.
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