Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Wednesday, February 22, 2012

DAX Technical Analysis 2012.02.22

The DAX Index traded almost all the month of February in an overbought zone according to the RSI indicator.

The daily chart of DAX shows a bullish channel still in progress  and a negative divergence on RSI that represents a weakening trend. The 7.000 level represents a resistance for the Index while the first main support is given by the lower border of the bullish channel and the 6.800 horizontal level.

If the investors will liquidate some of their long positions, a break below the support level of 6.800 will set the market for further correction.

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