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Short term
Trade view / 23 May 2016 at 6:46 GMT

Dax gives bearish signals below 200-day average rate

partner and technical analyst / 3 c analysis
United Kingdom
Instrument: GER30.I
Price target:
Market price:
Background

Dax June '16 contract - Last week’s signals were bearish, and these have been confirmed, with sentiment posting a fourth down-week in a row and initial losses of more than 200 points. Downside impetus has slowed, however, with futures posting an inside weekly range for a second week in succession. This is occurring with futures trading close to horizontal 50, 100 and 200-day average rates and reflects some indecision at current prices. Nonetheless, there remains a bias to sell into any strength while below the 200-day average rate and to test April's lows.

Management and risk description

Sell the rally and lower the stop to entry if the first target is met

Parameters

Entry: sell at 10,079.5 points, last week's high

Stop: 10,169.0, May's top

Targets: 9,649.5, the last 6 week open, and 9,472.5, April's base

Time horizon: this week


Source: CQG Inc

DAX Weekly - inside ranges
Source: CQG Inc

DAX Monthly - key 50% pullback
Source: CQG Inc


— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
1y
DudetteUK DudetteUK
At the pace, we will be at your first target before lunchtime!!!
1y
Steve Lucas Steve Lucas
Ha - kind of expected up-move to start the week...now have to re-think
1y
DudetteUK DudetteUK
Weird open indeed
1y
Rodrigues Rodrigues
Looks bearish to me lets see tomorow s data
1y
DudetteUK DudetteUK
Now, we are at your entry level of 10075, time to sell?
1y
Steve Lucas Steve Lucas
I have...but legs crossed
1y
Faida Faida
Steve even with this powerful upswing you see the weakness??
1y
Steve Lucas Steve Lucas
still below 200 day average an d 50-62% recovery to losses since April high.....obviously market bid today....but happy to sell here with relatively tight stop at may's high
1y
DudetteUK DudetteUK
thanks for your insight Steve... legs and fingers crossed

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