DAX break above 8850 was actually a short term buy signal would you believe! We hit targets of 8960/9000, 9050/70 and 9140/80 but topped exactly here – unable to reach our selling opportunity at 9350/9400.
Reports will be updated before European open and at about 19:00 GMT
DAX gaps lower to open at 8281. Further losses target 8180, 8140/30, 8100 and 2-week trend line support at 8030/00 before a retest of support at 7960/30. We held just 10 ticks above here last week but further losses this week target 7850/40 and 7800/7780, perhaps as far as 7720/00.
Outlook negative so gains are likely to be limited but above here 8330 allows a recovery to 8440/60 then a gap to fill at 8550/8600. Shorts need stops above 8700 for 8800/10 and 9000/9050 then resistance at 9140/80. If we unexpectedly continue higher look for a selling opportunity at 9350/9400. Stop above 9500 for 9650/9700.
Trends
- Weekly outlook is negative
- Daily outlook is negative
- Short Term outlook is negative