Where is Dax Going to Reverse – at the 20 SMA, 50 SMA or the 100 SMA? - Forex News by FX Leaders
if the 20 MSA goes, the 50 and the 100 SMAs will be waiting lower

Where is Dax Going to Reverse – at the 20 SMA, 50 SMA or the 100 SMA?

Posted Wednesday, July 10, 2019 by
Skerdian Meta • 1 min read

Stock markets have been on a bullish trend since they reversed at the end of last year, following a terrible Q4 when they tumbled lower on a deteriorating sentiment. Since then, buyers have been in total control and moving averages have also been helping as they kept providing support on dips in the daily time-frame chart.

During the first several months when the trend was pretty strong, the 50 SMA (yellow) was providing support. But then, the sentiment turned negative again in financial markets as the global economy entered another weak phase and the trade war escalated again. As a result, we saw a dive deeper in May and DAX lost around 1,000 points.

But, the 100 SMA (green) came to the rescue and the uptrend resumed during June. Stock markets opened with a decent bullish gap at the beginning of this month after the G20 summit which improved the sentiment further in financial markets, although we have been seeing a pullback lower in the last several days.

Now the price is trading at the 20 SMA on the daily chart which is providing some form of support. The picture now points to a possible bullish reversal after the doji candlestick from last Friday which is a reversing signal. But, the sellers still look in control, so I will be waiting for Dax to reach the 50 SMA (yellow) and then I will look to buy this index, because right now it seems to dangerous.

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About the author

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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