Jump to content

DAX 40 and CAC 40 Technical Outlook: In Face-off with Resistance


Recommended Posts

DAX/CAC TECHNICAL HIGHLIGHTS:

  • DAX hit a big level and is currently reversing
  • CAC is turning down off after test of 200-day MA

DAX 40 and CAC 40 Technical Outlook: In Face-off with Resistance

DAX 40 AND CAC 40 TECHNICAL OUTLOOK: IN FACE-OFF WITH RESISTANCE

After a massive recovery the DAX is finally running into an area of resistance that it is finding formidable to overcome. The area from just over 14800 to 15100 is a big one, and with the market reversing the other day at big resistance, a retracement, or sideways period at best, is to be expected.

There is short-term support at the top of a range created mid-month at 14553. The DAX may look to hold this spot and retest the aforementioned resistance zone, but given how far we have come in such a short period of time we may see more downside towards 14109 or worse.

For now, the trading outlook is not favorable for longs given overhead resistance and overbought conditions. It could become a bit of a choppy market with a downward bias. Another failure up around 14800/900 could offer up a good opportunity for would-be shorts to play this scenario.

 

DAX DAILY CHART

dax daily chart

DAX Chart by TradingView

The CAC snuck above horizontal resistance dating to December at 6747, but quickly found it difficult to climb above the 200-day moving average only 30 handles higher. The smallish reversal lower could continue in the near-term.

There is some support around 6655 that could keep price bobbling between support and resistance. It is seen as taking a little time of digestion before the CAC can reassert itself towards higher levels. If we do see the recent high at 6829 taken out, watch the trend-line off the Jan high.

Overall, though, the outlook for the CAC is naturally similar to that of the DAX, but the CAC remains a bit more bullish in the absence of major resistance, while the DAX remains seen as the better short given its major levels to overcome.

CAC DAILY CHART

cac daily chart

CAC 40 Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst. 31st March 2022. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • WIPRO – WIPRO (1D Chart) Elliott Wave Technical Analysis Function: Larger Degree Trend Higher (Intermediate degree, orange.) Mode: Motive Structure: Impulse Position: Minute Wave ((iii)) Navy. Details: Minute Wave ((iii)) Navy progressing higher within Minor Wave 3 Grey of Intermediate Wave (5) Orange against 420. Invalidation point: 420 WIPRO Daily Chart Technical Analysis and potential Elliott Wave Counts: WIPRO daily chart is indicating a progressive rally to continue higher as Minor Wave 3 of Intermediate Wave (5) continues to unfold against 420 low. Bulls are expected to remain in control as Minute Wave ((iii)) Navy is potentially extending. The stock earlier terminated Intermediate Wave (3) around 780 mark in October 2021, followed by a zigzag corrective drop through 350 levels in April 2023; marked as Intermediate Wave (4). Since then, bulls have remained in control as Intermediate Wave (5) continues to unfold. Minor Wave 1 Grey within Intermediate Wave (5) Orange was a potential impulse followed by a combination to terminate Minor Wave 2 Grey around 375 mark. If the above is correct, the stock is now progressing higher as Minor Wave 3 unfolds. WIPRO – WIPRO (4H Chart) Elliott Wave Technical Analysis Function: Larger Degree Trend Higher (Intermediate degree, orange.) Mode: Motive Structure: Impulse Position: Minute Wave ((iii)) Navy. Details: Minute Wave ((iii)) Navy progressing higher within Minor Wave 3 Grey of Intermediate Wave (5) Orange against 420. Also note that Minute Wave ((iii)) could be extending as Minuette Waves (i) and (ii) Orange might be in place with (iii) in progress. Invalidation point: 420 WIPRO 4H Chart Technical Analysis and potential Elliott Wave Counts: WIPRO 4H chart is highlighting the sub waves after Minor Wave 2 Grey completed around 380 mark in October 2023. Minute Wave ((i)) extended through 545-50 range, while Minute Wave ((ii)) terminated around 420. Minute Wave ((iii)) is now progressing and could be extending against 420 mark. Conclusion: WIPRO is progressing higher within Minute Wave ((iii)) of Minor Wave 3 of Intermediate Wave (5) Orange against 420 mark. Elliott Wave Analyst: Harsh Japee Source : Tradinglounge.com get trial here!  
    • It's quite a potential GameFi project one could leverage on the tokens in the midst of the current market uptrend. Tho didn't have much ETH to stake in the PoolX but will sure try my best in the CandyBomb event.
    • TRON (TRX) is drawing attention as its price fluctuates between $0.16 and $0.17. Technical indicators point to the coin being oversold, suggesting a possible price reversal. With strong community support and recent strategic partnerships, the key question now is whether TRX can break through its resistance or face a pullback. If the coin manages to overcome this hurdle, Tron price could rise to $0.195. TRON Price Overview Current Price Range: TRX is currently trading between $0.16 and $0.17 as per Coinpedia Markets. Key Resistance Level: The immediate resistance is at $0.17. If TRX can surpass this, it could target $0.18, offering a potential 6% increase. Support Levels: In a downward scenario, $0.16 and $0.15 serve as the primary support levels, which could be tested if TRX fails to break through $0.17. Technical Indicators Signal Possible Reversal Relative Strength Index (RSI): The RSI is currently at 24.44, a clear signal that TRX is in the oversold zone. Stochastic Oscillator: Sitting at 4.69, the stochastic value also indicates oversold conditions, typically a signal that buying pressure may increase. SMA Analysis: The 10-day Simple Moving Average (SMA) is slightly below the 100-day SMA, indicating short-term bearishness, although the gap is narrow, leaving room for a potential reversal. Recent Partnership with Chainlink Boosts Optimism Collaboration Announcement: TRON has partnered with Chainlink to integrate the Tron Network into Chainlink’s data feed. Impact on TRON Ecosystem: This move is expected to enhance security and reliability for TRON, as Chainlink will serve as the official oracle for the Tron Foundation. Such a partnership could attract more developers and increase TRON’s value in the long run. Community Excitement: This development has generated significant optimism within the TRON community, as it positions TRX to be a reliable blockchain option for decentralized applications. Analysts’ Take: Potential for a Bullish Breakout Crypto Jack’s Perspective: Popular crypto analyst Crypto Jack, with over 350k followers on X (formerly Twitter), highlighted that TRX appears to be forming an ascending triangle pattern. Price Projection: According to him, if TRX breaks through the resistance at $0.17, it could push the price up to $0.195. Trading Alert: Jack has advised his followers to keep a close watch on TRX, as this bullish pattern could indicate a major price movement soon. Performance Highlights: A Strong Monthly Showing Green Days: TRON has recorded 17 green days over the past month, showing solid market interest and consistent performance. Longer-Term Gains: Over the last six months, TRX has surged 31%, and it remains up by 5% in the past month despite a recent 1.42% weekly dip. RSI Caution: The 14-day RSI on the 1D timeframe now sits at 67, suggesting that TRX could be approaching the overbought zone, though this level also indicates strong buyer momentum. Outlook and Price Prediction: Aiming for $0.20? Breaking Above $0.17: If TRX successfully breaks above the $0.17 resistance, a move toward $0.18 and potentially $0.20 could be in sight. Market Sentiment: Recent buying activity and the Chainlink partnership have boosted confidence, making a Tron price prediction of $0.20 plausible if market conditions remain favorable. Monitoring Resistance Levels: Traders should watch the $0.17 level closely, as clearing this point could signal a continued upward trend for TRX.
×
×
  • Create New...
us