Day trade
Trade view / 27 May 2016 at 7:23 GMT

Dax heads for short-term correction as rally stalls

Director / PIA First
United Kingdom

The more medium-term outlook trades within a bearish corrective channel, and this will remain untroubled until prices are forced above the 10,800-11,000 points area.

This week's 5% rally in Dax has been impressive and further upside is expected to follow. However, the rally is overstretched and momentum is stalling. We expect a minor pullback fully to correct the short-term overbought situation. 

A break below the daily pivot should lead to further selling, and we look to set shorts to target the daily chart gap and our bespoke support.

Management and risk description

Set shorts on a break of support to target trending support levels, and place a stop above this morning's high.


Entry: Sell a break of 10,240 points

Stop: A move above 10,290

Target: 10,125 & 10,060

Time horizon: Intraday

Dax index
Source: SaxoTraderGO 

Dax 5-year chart:
Source: SaxoTraderGO  

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more


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