Indeks DAX

Germany 30 (DAX) ‘A Trip Down Memory Lane’

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PROs:

Still well inside a multi-year ascending channel
Sharp quick recovery from last months low
Smart Money Hedgers have increased there bullish exposure
Small speculators are betting on a decline


CONs:

Multi-year reliable trendline in play
Monthly 61.8% Fibonacci level also in play


Report:

For a longer-term outlook, this basic Germany 30 (DAX) chart more or less says it all. Yes, we are still inside a multi-year ascending channel, but the major decline of late is obviously cause for concern. Coupled with that, the global economic outlook is uncertain to say the least.

Bottomcatcher’s Opinion: From a technical standpoint, above trendline resistance and 61.8% Fibonacci level is where you could consider going long for the medium to long term, with a stop loss at mid 102s. (below December 2018 lows). Alternatively, If resistance holds, another leg lower is to be expected.




Penafian

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