DAX bounces of a crucial support
26 July 2022
Tuesday is so far pretty bad for DAX but maybe the second half of the day will be better as the end of the European session brings us the light in the tunnel.
In general, last several days were pretty great for the German index. Crucial thing happened on the 14th of July, when the price bounced from the 12440 supports, which currently serves as an unbreakable bullish stronghold. Day later, price managed to break the mid-term down trendline (blue), which confirmed the buy signal.
DAX peaked on the 20th of July and since that, we have a bearish correction, which is beautifully shaped like a flag (green). Today, DAX is testing the lower line of the flag and the first reaction was bounce. Worth mentioning, that beside of the lower line of the flag, in the same place we have the 38,2% Fibonacci and also support coming from the local tops from 8th and 18th of July (blue).
As long as the price stays above the blue area, the sentiment is positive and situation looks promising for the buyers.