DAX - look for a move back towards the bottom of the range
DAX intraday : Neutral. The index moved back to the top of its range, but failed to breach new highs. Intraday we could see a return towards the middle or the bottom of the range
Intraday supports: between 13450 (gap, middle range) and 13380 (bottom of range)
Intraday resistance: 13560 (top of range) and 13605 (All time high)
As opposed to US indices, the DAX is struggling to print new highs as it approaches its all-time high at 13605. The picture is also deteriorating with a notable bearish divergence on the daily RSI. While the long-term trend remains firmly on the upside, a consolidation in the short-term may be needed before the index can move meaningfully higher and breach the ATH.
IG Client Sentiment:
Germany 30: Retail trader data shows 22.78% of traders are net-long with the ratio of traders short to long at 3.39 to 1. The number of traders net-long is 5.35% higher than yesterday and 4.72% higher from last week, while the number of traders net-short is 2.55% higher than yesterday and 0.31% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Germany 30 prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current Germany 30 price trend may soon reverse lower despite the fact traders remain net-short.
Intraday supports: between 13450 (gap, middle range) and 13380 (bottom of range)
Intraday resistance: 13560 (top of range) and 13605 (All time high)
As opposed to US indices, the DAX is struggling to print new highs as it approaches its all-time high at 13605. The picture is also deteriorating with a notable bearish divergence on the daily RSI. While the long-term trend remains firmly on the upside, a consolidation in the short-term may be needed before the index can move meaningfully higher and breach the ATH.
IG Client Sentiment:
Germany 30: Retail trader data shows 22.78% of traders are net-long with the ratio of traders short to long at 3.39 to 1. The number of traders net-long is 5.35% higher than yesterday and 4.72% higher from last week, while the number of traders net-short is 2.55% higher than yesterday and 0.31% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Germany 30 prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current Germany 30 price trend may soon reverse lower despite the fact traders remain net-short.