DAX analysis for the coming week:

Good morning and happy Sunday community!

The week just past has given us a fair amount of volatility regarding the German index. On Monday , August 24, there was an upward attack on the 12882 area and breaking it very strongly got us quickly to the target reported higher at 13024.

On Tuesday and Wednesday , on the other hand, the market held the 13024 area, which became a support to launch the two attacks to 13230 or so. There the market suffered and failed both times to accelerate to the upside. In the 13215/230 area is a strong daily resistance that will be very hard to break.

In the picture below you can see how last week’s upward levels have been fairly well respected.

DAX analysis for the coming week
source t3 webank

Last Sunday I predicted that the market might go down this week (see here). However, I had no statistical data or graphs to support my hypothesis. In fact, if I had just followed my instincts, I would have ended a very bad week.

The important thing is always not to be a guru or wizard, but to have a proper strategy, backtested and above all in line with your capital and trading styles.

DAX analysis for the coming week : levels to monitor

As for the levels to monitor for the coming week, I can say that there are two range levels to keep an eye on: 13230 where the shorts will try to defend their positions and at 12942 the longs where they will do the same.

In between always remains 13024, an important volumetric area filled with long positions. The price there often acts as a magnet to bounce back.

DAX analysis for the coming week
source t3 we bank

Always remember that the levels described to actually declare themselves broken need confirmation at least in h4, although daily closes are better for more confirmation.

The German index at the moment remains with a definitely bullish structure, and I see no major signs of change in the medium term. The only unknowns where the market could change and go down are possible negative news about aid packages, lockdowns, and exogenous news.

In conclusion, I expect yet another volatile Monday. For some time now that day has been consistently making very interesting upward levels and then in the following sessions working in a trading range. So watch for breakouts of the levels in the picture and possible acceleration thereafter.

Thank you and happy trading to all!

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