Dax reversal cues further upside
Our medium-term bias in Dax remains negative as price action trades within a corrective phase and below 10,850. The bullish outside day onTuesday signalled a clear reversal, engulfing the bodies of the three previous weekly candles, after the selloff stalled at previous support and the daily ichimoku cloud.
Management and risk description
We look to set longs on a dip to target the morning high (also 61.8% fibonacci retracement and the 78.6% fibonacci retracement level) before attempting the psychological 10,500.
Entry: buy GER30.i in front of 10,060.
Stop: a break below 10,000
Target: 10,175, 10,325 & 10,500
Time horizon: 1-3 days.
Dax could claw back to 10,500 making it a candidate for an intraday dip-buying strategy
Dax five-year chart
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more