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Article / 06 October 2016 at 9:33 GMT

Dax trading in a falling trend channel

Technical Analyst / Saxo Bank
  • Dax did not break upper falling trend line in falling channel 
  • German index seems to be still in bearish mode
  • If Dax closes above 10,650 a test of August/September double tops is possible
By Kim Cramer Larsson

This morning the German Dax index got rejected at the upper falling trend line in the falling channel it seems to be trading in for the past couple of weeks. 

Worth to notice that on September 22 when the Index peaked above 10,700 it didn't manage to close above the 60 threshold on RSI indicating Dax is still in bearish sentiment after its close below 40 September 16.

Currently it seems like RSI is testing the falling trend line (blue line on RSI) and failing to break above that line and above the 60 threshold could spur a new sell off in Dax. 

A sell off that could push Dax towards 10,000. 

However, if Dax closes above 10,650 it would demolish the current bearish picture and a test of August/September double tops would be in the cards.  

Dax since February

Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more

— Edited by Clemens Bomsdorf

Kim Cramer-Larsson is a technical analyst at Saxo Bank 

06 October
AlexF AlexF
Dear Kim could you suggest an put option/strategy to protect on DAX ?


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