DAX: resistance area still holds – UBS column

Review: The DAX has been around the resistance area at 13,300 / 13,350 points for around a month. Attacks by the bulls above this resistance area were only temporary and were ultimately rejected again and again. The DAX was able to climb up to 13,445 points in the past trading days, but then fell again and closed the day at 13,313 points. Overall, the DAX has been moving sideways since June and in the large picture in the monthly chart, the DAX has not been able to get through the large resistance zone at 13,400 to 13,800 points since 2017. The strong euro, which was already trading above $ 1,210 early on Thursday morning, also has a negative impact on any further increase.

Outlook: The short-term upward trend in the DAX is still intact, but the upward momentum has flattened significantly in the past few days.

The short scenarios: The DAX rebounds in the resistance range of 13,350 to 13,450 points and initially sets course for support at 13,000 points. If it goes further deeper, the lower limit of the rising trend channel should be started at currently around 12,900 points. If the bears break out of the rising trend channel downwards, the still open price gap at 12,600 points would be the next target. Just below that, the 200 EMA runs at 12,515 points, which could put a stop to the bears.

The long scenarios: The bulls manage to break through above the resistance area at 13,350 / 13,450 points. In this case, the bulls could set course for the last upper price gap at 13,500 points. If it goes even higher, the all-time high of 13,795 points would be the next target.


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