Dax strength persists as underlying bid supports
Whilst the medium-term picture for the Dax index remains mildly bearish with the downward trending resistance coming in around 10,650, the corrective rally has found renewed momentum despite last week's setback.
We look to set longs around current levels (10,225) to re-challenge the previous day's high, then the May high and 61.8% Fibonacci retracement (10,385) and possibly the downward trending resistance. A possible AB=CD would also target 10,650.
Entry: Buy GER30.i at current levels (10,225)
Stop: A break below 10,150
Target: 10,315, 10,385 and 10,650
Time horizon: 1-5 days
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