Never miss a story from Paul Robinson

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Paul Robinson

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

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.