RSI is hitting oversold, and DAX is at a support level currently and at a key FIB level too. We are looking at a short period of gains as German factory orders have increased seasonally by 2% compared to the previous -0.9%.
Also as the Euro weakens against the dollar, the DAX will gain momentum in the opening of Monday's sessions. As most of the heavy giants on the index, namely VW and Daimler conduct most of their activity in dollars. As we all know this is a negative correlation, but the extent to what it is is up to the markets to decide.
Moving back to the technical side we have a Heads and Shoulders bottom forming too, which strengthens the case for a bullish uptrend next week as we mentioned before it is oversold and due a reversal.
Hope this helps, I'm new to this and feedback is appreciated :)
What happened in your view? Do you think market will recover and go bullish later in week?
malhardasgupta85
⋅
@johnsmithtetley, Honestly I don't know what happened I'm just trying to give a positive outlook on the Index. Definitely I think it will go bullish in the next week, along with the FTSE 100 and US Markets. I think we're just in a retracement period at the moment.
Kevin_Tchoulfyan
⋅
Great seen but difficult to be bullish on the Dax.
malhardasgupta85
⋅
@Kevin_Tchoulfyan, Yes I see what you mean it is definitely difficult to be bullish on the DAX, all I'm trying to do is put a case forwards for the bullish side.