FX.co ★ DAX surpasses second bounce target

Yellow rectangle- major support

Blue lines- support trend lines (broken)

Back on June 27th we posted an analysis talking about the increased chances of a bounce in the DAX index towards 16,080. At that point the daily candlesticks were implying strong support by bulls and increasing bounce chances. After a few days the Dax index has surpassed the second target. DAX is now back testing the second broken trend line from below. Recapturing 16,100 and staying above it is key for the continuation of this upward move. DAX has formed a higher low at 15,707 and as long as it trades above it, there are chances of seeing new higher highs. Today's low around 15,976 is key. Bulls do not want to see price fall below today's lows.