Technical Analysis: DAX 30 index : Prices are falling away from the strong resistance


Technical Commentary :
The DAX 30 index is composed of the 30 largest German stocks. Those companies are the most actively negotiated on the Frankfurt stock exchange....

Day By Day – Indipendent Research

The index was following a bullish trend within an ascending channel since September 2011. Prices recently exited from this pattern, breaking out below the lower threshold: the bullish dynamic is interrupted and a consolidation phase should now take place. We are neutral in the medium term.



Anticipation  :

On the short term side, a recovery movement brought prices back to a strong resistance, combining the 6451 points horizontal level, the lower threshold of the medium term channel as well as the 50-day moving average(dynamic resistance). The reaction on this obstacle happens to be strongly bearish as shown by the opening of a gap. The most probable scenario is now a drop of the index towards the 6080 points support. We are negative in the short term and we set the invalidation threshold of this scenario slightly above the 6451 points resistance.
Close price 6263.25

2 months Opinion NEUTRAL
2 weeks Opinion NEGATIVE

Resistances 6451 / 6660 pts
Supports 6224 / 6080 pts

Follow-up Analysys: On June 18th, we recommended the purchase of the Stoxx Europe 600 Travel & Leisure. Since then, the anticipated bullish impulse happened and prices reached our target at 123.90€, a performance à 2.3%.


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Source: ETFWorld – Day By Day – Indipendent Research



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