DAX: Is that the bearish turnaround? – UBS column

Review: Since defending the support at 12,207 points, the DAX has been in an upward movement that had brought it close to the annual high without particularly high dynamics. Last week there was initially a steep wave of buying that broke the high of 13,313 points and drove the index to 13,460 points. However, an even steeper sell-off started there, leading to a false breakout above 13,313 points and a clear drop below the support at 12,886 points and the short-term upward trend line.

Outlook: With the slump since Thursday, the weights in the DAX have shifted. The sellers have struck and developed a number of bearish signals that could shape the next days and weeks.

The short scenarios: If the DAX remains below the previous support at 12,886 points, a break of the small holding mark at 12,750 points and a fall back to the intermediate low at 12,633 points would be expected. A slight recovery could follow here. But then this support is likely to be broken and the sell-off wave to continue up to 12,207 points. In the medium term there could even be taxes of up to 11,575 points if the 12,207 point mark were also undercut.

The long scenarios: A recapture of the 12,886 point mark could result in a countermovement of up to 13,050 points. There the bears are likely to become active again and start the next sale. In any case, an end to selling pressure can currently only be expected if there is an outbreak of more than 13,200 points.

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!


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