Review: The day before, the DAX was euphoric in line with the international stock markets and was able to start the new stock exchange week with a gap-up. The DAX already opened significantly higher at 12’713 points and then rose to 13’297 points as trading continued. The long white candle of the day shows the enormous euphoria of the investors. However, after rising by 1,850 points in just seven trading days, the DAX is also enormously overheated. In addition, the index has returned to the resistance area in the monthly chart. It is questionable whether this area of resistance can still be overcome in this thin air. On the downside, the DAX also has two gaps open at 12â € ™ 595 and 12â € ™ 330 points, which should attract the index.
Outlook: The DAX is totally overbought in the resistance area and closed the day at 13,095 points. Early on Tuesday morning, the DAX was trading significantly lower at 12’950 points.
The short scenarios: The DAX turns down again at the resistance area in the monthly chart at 13,300 / 13,400 points. The bears’ first approach marks would then be the still open gaps on the underside at 12â € ™ 595 and 12â € ™ 330 points. A new long downward movement is off the table with the price increase from the previous day. This is true as long as the lower Fibonacci fan holds.
The long scenarios: The DAX can maintain the euphoria of the previous days and continue course towards the resistance area at 13,300 / 13,400 points. If the bulls achieve a sustainable breakthrough here, a further run-up to the all-time high of 13,795 points could be expected in the long term.
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