Pullback signalled for Dax
Bullish signals on the week have been confirmed, but with topside momentum slowing with futures trading close to the window, which has remained open since last year’s close at 10729.0, Wednesday’s signals were more cautious. These too were confirmed as investors booked profits with sentiment weakening over the day. The loss of topside momentum has weakened signals and left a temporarily bearish bias.
Management and risk description
Allow room to sell an intraday rally and lower stop to entry if the first target is met.
Entry: sell at market and at 10690.0.
Stop: 10,729.0, the window which has remained open since last year's close.
Target: 10,553.0, Tuesday's Marabuzo line and 10,401.0, a 50% pullback to this month's gains.
Time horizon: today only.
– Edited by Gayle Bryant