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.
In the current market profile, the price has fixed below the Kumo cloud. The boundaries of the cloud form a dynamic resistance zone for the price.
Used by investors to identify a change in trend, the green Chikou line is held below the price on the chart.
Trading recommendations:
Dynamic resistance levels are located at the Tenkan line near level 23871.94, the Kijun line around level 23908.37, the SenkouA line near level 23829.88, and the SenkouB line around level 23924.57.
