Short term
Trade view / 26 September 2017 at 10:15 GMT

UPDATE: Dax strength masks technical concerns

Director / PIA-First Limited
United Kingdom
Instrument: GER30.I
Price target: 12500 & 12350
Market price: 12625

The lon- term trend and bias in Dax remains bullish with prices extending higher from the February 2016 lows.

The Q3 '17 correction lower was well overdue and after the weekly bullish hammer (Aug/Sep) prices reacted sharply higher towards our medium term target of 12,675.

The pace of the reaction has led to the RSI moving towards overbought conditions and with signs of bearish divergence on daily and 4-hour time frames, their are hints of a possible correction.
A break below 12,500 should lead to a move towards filling the daily gap and 50 & 200-day moving average area.

As intra-day rallies continue to attract sellers there is also a good risk/reward contrarian opportunity.


Entry: Sell GER30.i at current levels (12,625),on a rally to 12,675 and on a break of 12,500

Stop: A break above 12,750

Target: 12,500 & 12,350

Time horizon: 2 weeks

Weekly chart highlighting bullish channel
Source: Saxo Bank
Daily chart highlighting bearish divergence
Source: Saxo Bank
Daily chart showing upward trending support at horizontal support level (12500)
Source: Saxo Bank
4-hour chart highlighting bearish divergence and bearish candles
 Source: Saxo Bank

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on is found here
bargee bargee
There`s also a gap at 12283 to be filled.
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Thanks Bargee! I mentioned the daily gap but not the actual level. Thank you!
Morris Morris
"There is also a good risk/reward contrarian opportunity" I agree to this. That final move up! Let see.
Jan Berg Jan Berg
Don't fight the trend...
Steve O'Hare - First 4 Trading Steve O'Hare - First 4 Trading
Thanks Jan! My medium term view remains bullish. This short term trade has been stopped this morning.
m7010306 m7010306
Admire those shorting this market.
Morris Morris
That final leg up materialized!
Morris Morris
A weaker Euro may be a contributor!


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail