Review: The DAX started trading again the day before with a gap-up and opened directly at 13,873 points after the index had gone out of trading on Monday at 13,790 points. But the profits could not be maintained, the DAX was already trading in very thin air after the recent strong price increase. The opening gap from the previous day has already been closed, but the opening gap from Monday at 13,601 points is still open and could now serve as a starting point for the bears when the price decline started the day before. However, as long as the DAX is quoted above the 10 EMA, prices can be expected to continue to rise over time.
Outlook: The upward trend in the DAX is still clearly intact, but the DAX is currently still overheating and could face a deeper price correction.
The short scenarios: The day before the DAX went out of trading with a very bearish candle after the previous strong run-up. The downward momentum continues and the bears are approaching the lower open gap at 13,601 points. If it goes deeper, as in the past, there could be a decline to just below the 10 EMA. A renewed rise above the 10 EMA should be seen as a bullish signal. Should the downward movement expand further, a price decline up to the 50’s EMA at currently 13,170 points would be expected.
The long scenarios: The DAX can ignore the weak daily candle from the previous day and continue to rise. The next big target price would then be the round mark of 14,000 points above the previous all-time high of 13,903 points. In addition, the upper limit of the trend channel in the daily chart in the area of 14,250 points would be targeted by the bulls.
Livestream on December 14th, 2020 from 6 p.m .:
With Hans-Werner Sinn, former President of the Ifo Institute: Corona and the miraculous increase in money in Europe
– Here is the stream! –