News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
DAX: Taking a Hit to Start the Week, Probing Support Zone

DAX: Taking a Hit to Start the Week, Probing Support Zone

Paul Robinson, Strategist

What’s inside:

  • The DAX taking a hit to start the week
  • Bringing two forms of support into play
  • Above support bias is neutral to bullish, below turns bearish

To receive Paul’s analysis via email, please sign up here.

This morning the DAX is taking a hit off the swing highs created Thursday on the back of a couple of developments to start the week (details here), causing the German index to test a key area of support. It looked as though momentum built up into the end of last week would result in a push to the 10800 at the least before seeing a decline, but sellers emerged quicker than anticipated.

The current area which the DAX sits is a key area of support dating back to April when the index turned lower from just beneath 10500 and again later in August, before becoming support twice during the same month. If we don’t see a turnaround from current levels, not far below is a trend-line extending higher from the post-Brexit lows.

The trend is still higher following the late June lows, while the more immediate trend since the middle of August is lacking, making drawing conclusions beyond a day or so difficult at this time.

We will operate off the notion that as long as horizontal support or the trend-line holds, then we will continue to give the benefit of the doubt to a neutral to bullish bias. However, a daily close below both angles of support (<~10375) will strengthen the case for shorts.

DAX Daily

DAX: Taking a Hit to Start the Week, Probing Support Zone

Follow market sentiment in real-time via SSI indicator.

---Written by Paul Robinson, Market Analyst

If you would like to receive Paul’s analysis directly via email, please sign up here.

You can follow Paul on Twitter at @PaulRobinsonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES