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DAX: upward breakout? – UBS column

Review: The DAX has been swinging sideways since the beginning of June and has so far been capped on the upper side by the resistance range between 13,200 / 13,300 points. The DAX is currently in a brief upward movement again and could be on the verge of breaking above the high of 13,313 points on July 21. Investors are focusing on the US Federal Reserve meeting in Jackson Hole on Thursday. Economists consider significant changes in the Fed’s catalog of objectives possible, which should further support the stock markets in the corona crisis.

Outlook: The DAX is generally in an extended sideways phase, but in the short term in an upward trend. The DAX is trading above both its 50 and 200 EMA, which is a bullish signal. Can the DAX break out above 13,313 points?

The long scenarios: The DAX can continue the short-term upward trend and break through the 13,313 point mark. As a result, the bulls should then set course for the last gap still open on the upper side at 13,500 points from February 21st. If the bulls then manage to climb further, a run-up to the all-time high of 13,795 points could be expected. The next round mark of 14,000 points would then follow.

The short scenarios: The DAX is already overbought again after the recent price increase and is initiating a new downward correction. The first starting point would then be the round mark of 13,000 points, followed by the support zone of 12,830 points. Below that, the bears should then head for the 50 EMA at 12,620 points. Only below the 50 EMA would the situation for the DAX deteriorate again and a return to the 200 EMA at 12,160 points would be likely.

Disclaimer: The text is a column of the UBS. 4investors is not responsible for the content of the column 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!

At a glance – chart and news: DAX share index

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