FX:GER30 DAX index of German listed shares
2 weeks breakout into resistance.
For the next 2 weeks, the upside is limited to a few percent if any.
Some sort of correction is going to take place.
The black line that is taking the tops of 2011 is cause for concern. This is matching the capping line on SP500 and could have the same limiting effect overall.
if the breakout is real - 10000 need to retain (in weekly close at least).
For a strong rally to be sustainable, I would think that at some point US need to join. This is not happening for now.
- Locally better think short and money manage if upside.
- The upside after correction could be up to 13,000 end of year (if 10000 retains and DAX manages to deal with the black line and SP500 stays above 1880 overall and manages to reach back to its top line later this year at 2200+)
- Supports are 10000, 8800, 7000
Forced to trade with 500pts stop, i would go short for 2/3 weeks.