During previous trading sessions, the intersection of the Tenkan and Kijun lines, marked with a pink square, was observed on the DAX 40 chart. This signal indicates a potential change in the downward trend.
The second important signal is a change in the direction of movement of the Kumo cloud. This change is marked with a vertical purple line on the chart. The appearance of orange color in the cloud indicates a change in the main direction of movement to upward.
The current situation
Let’s carefully look at the current values of the main components of the Ichimoku indicator to assess the current state of the market:
The Tenkan and the Kijun lines are positioned above the current price. It indicates a negative market sentiment in the moment.
The dynamics of price movement over a longer distance is determined by the Kumo cloud, which is now colored orange. Thus, this signal prioritizes the upward vector of price movement in the future.
Currently, the Kumo cloud lines represent a dynamic support area for price.
The Chikou line, which displays the closing price with a lag of 26 periods, is above the current price.
Trading recommendations:
Dynamic support levels are on the SenkouA line, at the level of the 23992.30, and the SenkouB line, around the 23878.43.
Dynamic resistance levels are on the Tenkan line, around the 24061.44 mark, and the Kijun line, around the 24062.92 mark.
