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DAX technical

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DAX technical

Daily - 07.11.2022

Strong candle with strong volume on Friday. Might be a first sign of a squeeze. 13.501 was reached, but the got rejected by the EMA200 13.563.

Right now we do not have a preferred scenario.

 

Support 13.193-130 (gap) 13.042 12.911 12.896
Resistance 13.501 13.563 13.660-97 (gap) 13.947

 

Week 46

Dax has left the bear-market and closed above the down-trend. In addition prices peaked above the 78,6% and closed right at the weekly EMA200

This is a very strong performance of the index and yet we do not see much of a squeeze. End of last week we have seen a first sign of a little squeeze, but the volume says no.

Open interest has moved up again from previous week with a current max pain level at 13.000 (+200 points in the last two sessions).

Sentiment is bullish, but institutional investors are not that convinced anymore. Other that the private investors.

The five long white candles in a row speak for a strong V-shape recovery, but this scenario requires a confirmation now. We need a close above 13.564 now, then we can expect a side-ways correction. Another scenario would be a correction with a pull-back to the down-trend (13.143).

In case we get a squeeze, we might see a spike up - maybe up to 13.947.

Strategy: As the potential range is wide and a lot of scenarios are plausible, we might want keep the feet still.

Right now we do not have a preferred scenario.

 

Support 13.286 Kijun 13.143 13.101 EMA20 12.900 (38RT)
Resistance 13.501 13.564 13.907 13.947

 

Sentiment

 

Frankfurt Sentiment