Technical Update - DAX bounce starts to get some headwind. Can it overcome or will it retreat?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX has reached the 0.618 Fibonacci retracement of the August sell-off at 13,434, a few points below the falling 100 SMA. At the time of writing RSI is being rejected at 60 i.e., still in bearish sentiment. RSI is the key indicator here. If it manages to close above 60 there is more upside in store for DAX. A test of the medium term falling (black) trend line will be likely. If the falling trendline is broken 13,948 is key resistance.
If RSI does not close above 60 market is likely to retrace and if DAX drops below 13,088 selling pressure is likely to accelerated pushing DAX to key support at around 12,400.
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