Last Friday, the DAX® reached a new all-time high above 14,100 points and has not made any real progress since then. Even today, the slightly positive opening with prices just below 14,000 points is sold again in the morning.
A potentially bearish wedge formation can be seen on the hourly chart. This indicates that the momentum on the upside has decreased significantly in the past few days and that we should be prepared for a somewhat larger countermovement to the south.
If the wedge formation is left permanently to the south, a larger setback towards 13,600 points, potentially even 13,000 points and lower, would not be a big surprise. The opportunity risk profile on the long side is therefore becoming increasingly unattractive here, and the bulls’ time may have run out for now. Only an increase back above 14,050 points avoids the immediate danger of slipping in the index.
DAX® in points hourly chart; 1 candle = 1 hour (logical candle chart display)
Observation period: December 18, 2020 – January 12, 2021. Historical considerations are not reliable indicators of future developments. Source: Guidants.com
DAX® in points monthly chart; 1 candle = 1 month (logical candle chart display)
Observation period: 01/01/2016 – 01/12/2021. Historical considerations are not reliable indicators of future developments. Source: Guidants.com
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The contribution DAX – The time of the bulls is running out first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Henry Philippson
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