DAX: rebound on the 50s EMA – UBS column

Review: Since the breakout, the DAX has been moving upwards above the important resistance area at 13,350 points for days in thin air. Nevertheless, the DAX was able to continue to rise at first and reached a high of 13,774 points. The weak day candle from Friday with the long upper shadow and the small candle body warned of the imminent price weakness. At the beginning of the week, the DAX then collapsed sharply and reached its low of 13,060 points. The DAX then bounced back up at the 50’s EMA and was able to go out of trading at 13,246 points. Before the trading session, the DAX was trading a little higher again at 13,290 points early on Tuesday morning.

Outlook: With the price slump on the previous day, the DAX is again trading below the massive resistance zone at 13,350 points. Nothing has changed in the sideways phase so far. The focus is on the 50 EMA.

The long scenarios: As long as the DAX can defend the 50’s EMA, prices can be expected to continue to rise over time. The focus is on the upper side of the 10 EMA at 10,395 points. The DAX must rise again sustainably above the 10 EMA, then the opening gap from the previous day could be closed at 13,624 points.

The short scenarios: The DAX remains below the 10-EMA or rises only slightly above the 10-EMA. This would then be a direct signal of weakness and would point to a further decline in prices in the DAX. If the 50 EMA is then broken down, the downward momentum could increase quickly and the first gap on the bottom in the area of ​​12,600 points could be closed.

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With Hans-Werner Sinn, former President of the Ifo Institute: Corona and the miraculous increase in money in Europe
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