DAX Trying to Recover Near 200-Week Average
08 March 2022
Tuesday has brought a relief rally onto the markets as equities advanced higher amid high-level diplomatic talks between Russia and Ukraine.
The weekly candle of the DAX index is now looking like a large bullish pin bar, which is a bullish reversal formation in this case. However, there are still three and a half days left to close the week so that everything can change pretty quickly.
The initial resistance seems to be at the 200-week moving average (the green line), currently near 13,150 EUR. If the index manages to close above it on a weekly basis, it could be a bullish signal.
For the index to end the current bearish wave, it needs to climb above 13,850 EUR. In that case, the long-term uptrend could resume.
On the other hand, today's 3% rally in DAX could just as easily be used to reenter the market with new shorts, especially if diplomatic talks won't yield any significant results.
The very-short term support is seen near 13,000 EUR, followed by 12,800 EUR and then this week's lows at 12,450 EUR.