Trade view /
26 September 2017 at 10:15 GMT
12500 & 12350
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
Daily chart highlighting bearish divergence
Daily chart showing upward trending support at horizontal support level (12500)
4-hour chart highlighting bearish divergence and bearish candles
— Edited by Clemens Bomsdorf
Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here