DAX: It’s getting shaky – UBS column

Review: The DAX has been moving upwards directly at the lower limit of the rising trend channel for weeks. However, it can be clearly seen how the upward dynamic continues to weaken. With the high of 13,313 points on July 21, the DAX once again showed an upward will, but the bulls had to withdraw on the same trading day. Since then it has been moving sideways hesitantly. After the long previous climb since the Coronacrash low, the air is apparently out. The stock exchange is not a one-way street and after the month-long price increase only a gust of wind is missing and the DAX breaks out of the rising trend channel. On the underside, the bears had all their paws to do with the numerous open gaps.

Outlook: The upward trend in the DAX is still intact, but the emphasis is currently on ‘still’.

The short scenarios: The DAX no longer achieves another high and remains below 13,313 points. The bulls are running out of steam, the speed of the trend channel can hardly be followed. If a rapid rise above 13,313 points is not successful, the DAX will slide down from the trend channel and head for the 13,000 point mark. If it goes deeper, the downward dynamic could intensify and the next open gap could be started at 12,697 points. The last major line of defense for the bulls at the 200 EMA is in the range of 11,980 points. If the bears break through here, a return to the lower Fibonacci fan in the weekly chart at 11,300 points could follow.

The long scenarios: The bulls are showing all their strength, defending the trend channel and exceeding the high at 13,313 points. Then the next price target is likely to be 13,500 points where the last open gap is on the top.

Disclaimer: The text is a column of the UBS. The content of the column is not the responsibility of 4investors and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!


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