German DAX Likely to Fall to Fresh Lows
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German DAX– Retail traders have bought aggressively into GER30 declines, and a contrarian view of crowd sentiment warns it will continue to decline through near-term trading. The GER30, which tracks the German DAX equity index, has failed to sustain last week’s strong gains. Combined with the sharp turn in retail positioning, we see this as evidence that the DAX remains in a clear downtrend.
It would take a strong shift in retail sentiment to negate our bearish trading bias.
See next currency section: S&P - S&P 500 Remains a Buy
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.