Review: The DAX failed several times in the past few months due to the resistance zone near the high of 13,313 points. This barrier was last started in mid-September and defended again by the bears. Since then, the index broke in a straight sell-off below the support at 12,633 points and almost to the central holding level at 12,207 points. However, the bulls managed to initiate a recovery last week that pushed the value back to the 12,886 hurdle. The bulls failed there and the index fell significantly again in the second half of the week.
Outlook: The fight for direction in the DAX is still in full swing and could end in favor of the bears below 12,886 points. The sell signals of the last few weeks have not yet been neutralized.
The short scenarios: If the DAX now breaks below the range by 12,500 points, another bearish signal would be active and sales of up to 12,207 points would be expected. At this point the further medium-term course is decided. Because a break in this central support would result in an overarching sell signal with an initial target at 11,957 points.
The long scenarios: If, on the other hand, the index can rise above 12,750 points this week, the result would be an attack on the striking hurdle at 12,886 points. Here the seller side could strike again and sell the index to 12,500 points. Above that, however, a small long signal with targets at 12,950 and 13,075 points would be activated.
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