DAX climbs higher after the hammer candle
03 March 2023
A lot is currently happening on indices. Yesterday, most of them set the new mid-term lows early in the day. Later on, however, they resulted in a strong V-shaped reversal which created promising bullish reversal patterns in a few cases. In today’s analysis, we have the German DAX, whom we analyzed a few days ago. Back then, we were bullish by saying this:
“As long as we stay above the two supports (neckline and up-trendline), the sentiment remains positive and DAX has a high chance to set a new long-term high. The closest resistance is currently the black line connecting the top of the head with the right shoulder. The price breaking above the black line would be a nice buy signal and with today’s bounce, it looks like the base scenario for DAX.”
This scenario is still in play. Yesterday’s hammer on the daily chart and today’s rise look very promising. If buyers manage to keep the closing price high today, we will get a proper signal to buy. The chances of that happening are really high.