Dax – Inside Bar Break Leads to Massive Move Lower
Yesterday in the daily members commentary, we talked about the inside bar that had formed at the close of the prior session. We discussed how if the index can break 9900, selling from the European open, then 9800 and 9750 was the next likely downside target before basing.
Today the German index opened the European session selling from the beginning, crashing below 9900 in a matter of hours. Those who shorted on the break profited heavily, so congrats to the members who did.
One thing to notice is how after the open and heavy selling, the index formed another inside bar towards the lows, suggesting another break lower was likely. This led to an additional round of selling, hitting the final 9750 target for +150 points later.
For now, the index is sitting at a major support level in 9750 which is the June lows. If this folds, then 9675 and 9600 would be up next, so potential for a much deeper move lower. If the index can base here, then it will re-attack 9850.
