Review: The German share index was able to reach a new high yesterday on the basis of the daily closing price, but the intraday high of September was not cracked. At that time this was 13,460 points. The index marked yesterday’s high for the day at “only” 13,434 points. At the close of trading, the DAX was still trading at 13,382 points. This high closing price finally broke the resistance zone at 13-350 points on a daily basis. It is now the duty of the cops to make follow-up purchases today, as the outbreak over this striking hurdle has not yet been significant.
Outlook: Today is an important trading day, because only with a larger bearish candle of the day, the sellers could gain the upper hand, as the buyer apparently runs out of strength. So the warning lights should all come on.
The long scenarios: Buyers should avoid falling back below the 13-250 point mark. Above this price level, however, the index would still have room for up to 13,600 points or a new all-time high of 13,795 points. Should the index even close well above this level, increases well over 14,000 points would be possible.
The short scenarios: So far, buyers have not been able to develop a stronger upward momentum. A sell signal would therefore be generated immediately after a daily closing price below 13‘250 points. This sell-signal could push the DAX down to 12,900 points. At this price level, the bulls would have a chance of stabilizing.