Sterling has been blasted lower after BoE governor Carney cast doubt on a previously pretty-much-expected UK May rate hike. The EU's rejection of Britain's latest Brexit-Irish border plan only served to deepen the rot.
Day trade
Trade view / 25 May 2016 at 8:15 GMT

Dax reversal cues further upside

Director / PIA-First Limited
United Kingdom
Instrument: GER30.I
Price target:
Market price:

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.

An overnight extension higher above the 200-day moving average has stalled and reversed and looks to target the overnight gap, but we believe the underlying momentum will support below here and we would treat this as a dip-buying opportunity.

We look to set longs at our short-term bespoke levels to target this morning's peak with a stop below the daily pivot.

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 in the last two months
Dax could claw back to 10,500 making it a candidate for an intraday dip-buying strategy
Dax five-year chart
 Source (all charts): Saxo Bank

— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more
tcat tcat
thanks, daily does look for a good long potential 10118 &10133 could be entries for that in my opinion 10034 is my sma and would be action as a soft SL where as below 10000.


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