As expected, the German benchmark index tested its neckline again yesterday at 12,500 points. From a chart and market point of view, the chances are still good that the German benchmark index will reach its previous record of 13,795 points in the medium term. Today the DAX 30 will move sideways above the 12,500 meter mark into the weekend. We have been pointing out this “strategic hedge at 12,500” for weeks. This support and support brand then became up-to-date again faster than expected. The market had, has and will always have its “own laws”. However, one can counteract these distortions very well with hedging. The stops should continue to be set according to personal security needs.
The medium-term market technology is evidence of a positive environment. However, short-term volatilities can repeatedly and unexpectedly cause trouble. The EU and Great Britain are continuing their talks on a Brexit trade pact. The politically most difficult points are still the same as at the beginning. The EU insists on guarantees that London will comply with certain EU standards in return for access to the internal market, in environmental and social law as well as in subsidies. From an economic point of view, divergent figures on the purchasing manager indices are published today. In Europe and Germany, these are forecast slightly negative. Slightly increasing in the USA. Today’s daily range can be classified between 12,690 and 12,500. The buy signal in the slow stochastics is also quite positive for today.
– Next chart resistance: 12,600, 12,690, 12,799, 12,975
– Next important technical chart supports: 12,500, 12,342, 12,142, 11,957
– Upper Bollinger Band: 13,195, Middle Bollinger Band: 12,830 and Lower Bollinger Band: 12,477
– 100-day line: 12,751 and 200-day line: 12,143 and: 38-day line: 12,949
– Indicators: MACD: neutral | Slow stochastics: buy-signal | RSI: neutral | Momentum: negative
– Ichimoku Kinko Hyo: negative
– It is expected to open at 9:00 a.m. at around 12,600
– (Trailing) stop loss: 12,500, 12,342, 12,142, 11,957 (depending on individual risk perception)
Primary trend (long-term): not yet back in the lfr. Upward trend
Secondary trend (medium term): chance of year-end rally still intact
Tertiary trend (today): Daily range: 12,690 to 12,500
Sideways & above the 12,500 into the weekend
Disclaimer: The text is a column of the Martin Utschneider, Head of Technical Analysis Personal-Financial.com Markets at Donner & Reuschel. 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