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DAX: 50’s EMA continues to block – UBS column

Review: The DAX has been fighting for days to break through the important 50’s EMA, which is currently in the range of 12,810 points. A sustainable upward breakthrough has not yet been achieved. Although the DAX was able to rise again briefly to 12,836 points the day before, it then fell again as the share price continued and went out of trading at 12,730 points. The 50’s EMA has repeatedly served as solid support for the DAX in previous months. With the price slide of September 21st, the index slipped dynamically below the 50’s EMA, which then turned from support to resistance. At the same time, the price slide below the 50 EMA generated a bearish signal.

Outlook: As long as the DAX is trading below the 50 EMA, further falling prices are to be expected in the medium term.

The short scenarios: The DAX cannot regain the 50 EMA and continues to slide. Before the trading session, the DAX is again significantly lower at 12,690 points. In the event of a new downward wave, the next starting point for the bears would be the important 200 EMA, which is currently quoted in the range of 12,340 points. If the bears break through here as well, further long-term price declines can be expected. Prices below the 200 EMA are more likely to indicate long-term weakness, prices above that are more likely to indicate long-term strength. A slide below the 200 EMA would therefore provide another bearish signal.

The long scenarios: The DAX can remain slightly below the 50 EMA and use the sideways phase as a springboard for a new upward movement. If there is a breakthrough to the top, a further rise in the share price to the round mark of 13,000 points and the first upper open gap at 13,116 points can be expected.

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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