Dax30 Breaks Moving Averages as Stocks Continue to Slide, but there’s Still Hope

Indices keep slipping lower and Dax30 has broken the 50 SMA on the H4 chart, but there's one moving average left to provide support

The downtrend continues for the week

Stock markets have been on a bullish trend for more than two months since the big reversal right after Christmas. They made a pullback lower at the beginning of this week but DAX found support at the 50 SMA (yellow) where it has found support before and the buyers pushed higher from there.

At some point yesterday we were nearly 100 pips in profit with this signal, but the sentiment turned negative again and indices turned bearish, diving lower. This time, the 50 SMA didn’t hold. We see that the price is still slipping lower and the 50 SMA is now clearly broken, as you can see from the H4 chart above.

The price is finding some support at the 100 smooth moving average

On the H1 chart, it was the 100 simple moving average (green) which was providing support at the same level and this moving average has provided support several times before during the uptrend. But, the 100 simple MA was broken as well.

Although, there’s still one last hope for buyers. The price is now finding support at the 100 smooth MA (red), so hopefully buyers will get active down here and reverse the downtrend of this week. We surely hope so since we are long on this index, but there’s nothing we can do unless the sentiment shifts to positive.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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