SPX & DAX Stable – Traders Cautious On Geopolitical Tensions

The global stock markets are quiet, but the ongoing tensions between the US, Russia, and Syria are keeping investors away from the market. Let’s take a look at the technical outlook of S&P500 and German30…

SPX – S&P500 – Ascending Triangle Pattern

You can see an ascending triangle pattern on the hourly chart. The pattern is providing solid resistance at $2,662 along with a support near $2,640.  The ascending triangle pattern typically breaks out on the upper side. If this happens, we may see SPX soaring towards $2,672 and $2,680.

S&P500 – 2 – Hour Chart

Support     Resistance

2641.37      2664.03

2634.36      2671.04

2623.03      2682.37

Key Trading Level:    2652.7

DAX – German30 – Descending Triangle Breakout

On the flipside, the DAX has broken out of the descending triangle pattern to trade at $12,350. You can also notice a 50-period EMA bullish crossover on the hourly timeframe.

German30 – Hourly Chart

Support     Resistance

12262.97    12358.43

12233.49    12387.91

12185.76    12435.64

Key Trading Level:    12310.7

You can see a descending triangle breakout on the hourly chart. Technically, the DAX needs to come down towards 12310 to complete a retracement before it continues another bullish wave. I will be looking for bullish entry near 12310. Since both of the setups are based on triangle patterns, I would highly recommend all the newbies to study FX Leaders Triangles and Wedges – Forex Trading Strategies to take profitable positions.