Bottom line: DAX long term structure remains bearish against 13800 levels. The indice rallied yesterday, extending its gains past 11900 mark. We now need to see a break below 11500, to confirm a bearish reversal ahead.
Fundamental Outlook:
DAX continued to rally yesterday and managed to close higher by over +2.20% above 11900 levels. Its counterparts SPX500 and Dow Jones managed to post moderate gains of +0.30% after slipping into the negative during early hours.
Risk sentiment continues to surprise investors as focus still remains on COVID-19 after effects on Global Economies as they re-open, US-China tensions and the Brexit. The ongoing protests over killing of George Floyd in police custody shall also be closely watched.
WTI Crude rally continued yesterday and it gained over a +1.0%, closing above $35.50. Brent Crude also managed to close higher at $38.66, up over +2.3%. The production output cuts in May 2020 might be extended further in the next OPEC+ meet.
Technical Analysis:
DAX continues to remain in control of bulls as the indice extends its counter trend rally towards 11920 (futures), as we write this article. It is inching closer to immediate price resistance around 12300 and only a break below 11500 would confirm that a meaningful top is in place.
DAX had earlier dropped from 13800 through 8250 levels in an impulse. It confirms that DAX needs to print yet another low below 8250 to complete the corrective structure. It remains to be seen from which price resistance, the indice reverses lower again.
The fibonacci 0.618 retracement of previous drop has already been hit around 11800 but futures triggered yet another high yesterday. Ideally DAX should stay below 13800 mark to keep the bearish structure intact.
Traders might be willing to initiate fresh short positions on a bearish reaction around current price (11800/900), with protective stops above 13800 and projected target below 8000 mark, going forward.
Prepared by
Harsh Japee, Technical Analyst.
DAX Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
