DAX: reached the 1D MA50 but can drop more if it breaks

25 May 2023

DAX has almost hit today the 1D MA50 (last time it had contact was March 29th) and reacted with a rebound. The 1D technicals are neutral (RSI = 45.355, MACD = 76.400, ADX = 25.34&) indicating that this is a first Support level but if we close a 1D candle under it, can drop more until they turn red.

Consequently, as long as the 1D MA50 holds, we will keep our first buy open, targeting the R1 (TP = 16,300). If a 1D candle closes under it, we will buy again on the 1D MA100, which is waiting on S2 and keep it for the long term even though a max technical drawdown extendes as low as -6.60%. Those where the % declines on the previous two corrective legs inside the Channel Up since December.


Prior idea:

## If you like our free content follow our profile to get more daily ideas. ##

## Comments and likes are greatly appreciated. ##