Technical Update - Top and reversal signal in DAX or continuation? Strong uptrend in Euro Stoxx 50 . Will it continue? Technical Update - Top and reversal signal in DAX or continuation? Strong uptrend in Euro Stoxx 50 . Will it continue? Technical Update - Top and reversal signal in DAX or continuation? Strong uptrend in Euro Stoxx 50 . Will it continue?

Technical Update - Top and reversal signal in DAX or continuation? Strong uptrend in Euro Stoxx 50 . Will it continue?

Equity 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

DAX was rejected at key resistance at 13,762 in the form a Shooting Star candle on the 4th August. A Shooting Star could be a top and reversal signal, but the jury is still out. Often it just signals a pause in an upward trend. Which one this is we’ll have to wait for a few days. If DAX closes above the height of the Shooting Star candle market will continue higher. For DAX it is likely to test the (black) falling trend line and possibly the 0.764 retracement at 14,162, but the 200 SMA could also be tested.

If instead DAX closes below 13,564 selling pressure could resumes and bear trend will resume if DAX closes below 13,335.

Source: Saxo Group

GER40 cfd/DAX future has now failed twice to close above resistance at 13,675. Maybe today is a third time. At th4e time of writing it seems like it. If GER40 drops below 13,330 bear trend is confirmed and support at 12,858 is likely to be tested.

Source: Saxo Group

Euro Stoxx 50 has risen in a steep trend. If the trendline is broken it is first warning of a likely correction possibly trend reversal. If Stoxx 50 closes below 3,664 a correction is confirmed. The Black falling trend line could be tested but the big test would be the 3,600 support. A close below bear trend is confirmed new lows are likely.
However, the trend is still up until proved otherwise and key resistance is at 3,857.

 

Source: Saxo Group

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Support Centre
For existing clients, please click here to request support via the Support Centre.

Have a question about our products, platforms or services? Visit the Support Centre to find answers for our most frequently asked questions. If you are still unable to locate an answer to your question, you will also find contact details for your local Saxo office to speak with a representative.

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.