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Long-term Tech outlook on DAX: update

Last updated 7/20/2012 4:39 AM EST (GMT -5) 0 Comments - Add your comment

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Fawad Razaqzada

Technical Analyst, GFT

Follow @FawadR_GFT

We have been keeping an eye on the DAX index for quite some time now. Specifically, I have been stressing the importance of the break above resistance at 6400. As you can see, the index came back down to test this level a couple of weeks ago before spending some time there as traders started to reverse their bearish positions into bullish. Then we saw the index break higher, leading to a strong rally. Our first target of 6700 , which marks the 61.8% Fibonacci retracement of the March-June leg down, has been reached. Now keep an eye on the area around 6850 for a potential sell-off. This level was previously support/resistance and the sharp rally towards it suggests we may see some profit taking there. Support is likely to come in around 6600, a level which was previously resistance.

For intraday analysis and trade ideas, follow me on twitter @FawadR_GFT

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About The Author

Fawad joined GFT as a technical analyst in 2010 and has since focused on timely market commentary and research for GFT with an emphasis on technical analysis. He achieved his CISI Level 3 Certificate in Investments (Derivatives – Retail) in early 2011.