Short Dax

Recent price moves above the upper band shows price strength and that an uptrend is in play on the Dax. However, we see Fibonnaci resistance at 12,143 and expect strong resistance at this level, and in the near term prices to drop to follow the long term downtrend in the index. The ECB meeting tomorrow should increase volatility in particular if there is much change in the ECBs monetary policy narrative during Mario Draghi’s speech. We are currently short the Dax and will look to add more our short above the 12,100. The continued uncertainty over Brexit and weakening Eurozone economy should increase downside pressure on the index.