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Technical Analysis: DAX 30 : The overbought level must be corrected

The DAX 30 index comprises the thirty largest caps listed on the Frankfurt Stock Exchange. It had a strong bearish dynamic – see crash of August 2011 – which was stopped by the contact with the major support at 5,125 points; a threshold correspondingto the 62% retracement of the rise marked between 2009 and 2011  ....


Day By Day – Indipendent Research


…This strong support has enabled the construction of a first recovery movement. Prices now consolidatein a volatilemanner, within the zone between 5125-6510 points. This interval should contain the index for the coming weeks so we are neutral in the medium-term.

 

05-12-2011E

Anticipation  :
In the shorter-term, the last impulse constructed from the support at 5373 points has propelled the index in a straight line towards the resistance at 6170.20 points. Despite the strength of the movement, the prices do not seem to be able to overflow this obstacle (close to the 50% retracement threshold of the bearish acceleration marked between last July and September). The configuration makes it possible to envision a bearish correction in the coming sessions.
We are thus negative in the short-term, and look for a return towards the support at 5782 points.
We set the invalidation threshold for this negative scenario just above the resistance at 6170.20 points.

Close price 6089.83

2 months Opinion NEUTRAL
2 weeks Opinion NEGATIVE

Resistances 6170,2 / 6298 pts
Supports 5782 / 5561,5 pts


Follow-up Analysys: The tracker dated 28/11/2011 recommended the purchase of the ISE National 30 index. Since then, our target of 65,653 points has been reached; i.e. a performance of 5.4%.

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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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