Retail has a bearish view on the ger30.. So look for long into brexit do the opposite. There has been 3 corrections since 2009 already, 2011 2015 2017 and by adding those together we have a big one.
DAX rejected 11350 and now IMHO on its way to test 10500 again (which I furthermore guess will not hold but let's see once and IF it gets there).
Will it go straight down next week or will it do a small range week, don't really know but this is a ugly weekly candlestick that is far from bullish. GL!
US markets are strong, we are in a risk on sentiment, with gov. shutdown seemingly avoided and trade talks going in the right direction.
I see a beautiful opportunity to play a long position with nice risk reward on the DAX Index.
I entered this position with a tight 30 pip stop below the recent shortterm consolidation range.
I am not willing to risk a big stop...
Although DAX will put in a ugly weekly red candle (unless sharp rebound today), and on a mid term time frame, I estimate we test 10500 again, the short term rebound (today/monday) is likely.
1) We are outside of 1h regression channel that is somewhat rising still
2) First pullback is usually bought buy "late-to-the-party" dip buyers (that will get burned next...
I took a quick glance at the GER30. If price breaks the 11066 price level (looks like it's about to) I would look to go long at the 10965 price point. That's if everything else aligns accordingly. I would take profit at the 11044 price point. *DISCLAIMER* THESE ARE JUST MY HUMBLE OPINIONS. NOT MEANT TO BE TAKEN AS TRADING ADVICE
DAX has been overlapping to the down side since a short term high was placed on last Friday. After running the double bottom formed on Tuesday this morning, the formation of bullish cup and handle is taking shape.
The handle part of the formation has retested the prior break out zone from 11145 to 11160 has given more strength to this formation.
IN MONTHLY CHART, IT IS STILL IN UPTREND (BIG WAVE)
IN WEEKLY CHART, IT IS STILL IN DOWNTREND (MIDDLE TIDE)
WAIT FOR BREAK+RETEST
THEN GO LONG TILL RESISTANCE
The German stock index DAX 30 (GER30) was introduced under "DAX" on July, 1st in 1988 by the Frankfurt Stock Exchange. It consists of the 30 largest companies listed on the Frankfurt Stock Exchange based on the market capitalization and liquidity. The trading hours for the Frankfurt Stock Exchange take place from 9:00 a.m. to 5:30 p.m. CET. The DAX30 is usually reported as a performance index, which means that the dividends of the companies are reinvested. In a price index the corporate distributions remains disregarded (this can be seen e.g. in EUROSTOXX50). If a company wants to be included in the DAX, it must be listed in the Prime Standard, it has to be traded continuously in Xetra and have at least a free float of 10 %. Additionally, the company must have a registered office in Germany or the main focus of its traded volume in shares is in Frankfurt and the company has a seat in the EU. Based on market capitalization, the five biggest German companies listed in the DAX 30 are Bayer (BAYN), Daimler (DAI), Siemens (SIE), Allianz (ALV) and BASF (BAS). The development in the DAX is often seen as an indicator for the development of the German economy. As a result, the DAX can be seen as a proxy for European economic health since the German economy accounts for almost one third of the total value of the Eurozone economy. The DAX 30s counterparts in Europe are the CAC 40 in France and the FTSE 100 in Britain.
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