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Market View

Trump delivers or not? Markets get nervous! (DAX Technical Outlook)

Wednesday, March 22, 2017 6:39 AM GMT

The markets opened higher without any bearish indication. Overall price action was without major volatility. Suddenly there it goes; a sharp downside move on US Indices, which influenced EU Indices as well. . 

Intraday Charts

SPX500


DAX

 

The market players justified this move on Trump’s questionable ability to deliver his promises. On Thursday, we are expecting the U.S. House of Representative’s vote on Republican Party’s health care plan. This is going to be a crucial test for Trump. Investors worry the plan may fail to pass. Therefore, traders found this opportunity to proceed on profit taking. Let’s not forget tomorrow’s Yellen’s speech that may give few more highlights to the investors. 

DAX Technical Outlook

Daily

We had given few warning signs about a potential weakness on DAX. There was an obvious MACD divergence on daily while the index was forming a rising wedge as well. This pattern usually is bearish. Price has to reclaim and retest from above the 21 EMA so as to turn to bullish again.


Hourly

We have noted a critical resistance zone. This zone defines the market’s bias. Above the zone, the momentum turns to bullish while below, the index remains bearish.


 


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