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DAX Index week 26-30 November

Last Week:

Previews week seems get kept under control of sellers. Main factor last week was situation in US Indexes where Apple decline push prices lower. 

However DAX did quite good after reach 11k price tag we saw bounce to 11265 and price form new key supports around 11100 mark.

 So far there was non or litle support form Thanks Giving and Black Friday, perhaps as market waiting for proper economic events and outcome from negotiations 

last week chart and outlook: https://www.tecet.net/?p=1565

So far :

EU/UK reach agreement today and fate of that deal is now in UK parliament

US/China deal will be hot topic this week due coming G20 summit at end of November – 1st December. Even slight hope of further discussions after new year, friendly hand shake can boost sentiment and create relief rally.  

Italy / EU budget – difficult situation still worry investors but there is all ready some positive signs of cooperation and discussions how to sort that problem.

Other:

Weak Germany PMI created decline in 10y bonds yields. Price on level from early September. As we remember rise in yields speedup September sell off so perhaps reverse can boost DAX Index. 
Germany’s benchmark 10-year Bund yield fell by over 3 basis points to 0.332 percent, its lowest level since early September. Other 10-year bond yields in the bloc fell as much as four bps as investors bet that weak economic data would encourage the ECB to leave rates lower for longer.


 

Next week:

Even as we can’t ruled out  another attempt to break lows and deliver short position under 11k price tag, this all ready seems is fight for scraps. Short selling overstretched and is open for further correction and risk reduction. 

My bullish sentiment had to adapt last week after 11200 key support failed but I’m still looking for relief rally and Long position will be my favoured setups for EOY. 

Buyers:

Buyers will have to take challenge and remove nearest 11270 resistance in order to get way open to next key point 11430. Good target for this week Will be 11515 and 11760 after consolidation / correction.

Also we can see early signs of down trend losing momentum at Daily RSI, similar situation like after beginning of year sell off where price retest lows twice before rally, lets see how that play out this time. 


Buyers will look closely for backup based on positive news mention earlier in this post. 

Sellers:

Will have to hold and cap attempts to rally all ready at 11200 mark, if that fail will have to retreat back above 11430 price. In order to reach TP under 11k – 10925/830 action will need to be aggressive, that is a bit difficult after current sell off, so perhaps is time for profit take and reload above 11500 for next push and prevent of breach 11630/760. 

Price performance:

https://www.barchart.com/futures/quotes/DYY00/performance

Support / Resistances 

https://www.barchart.com/futures/quotes/DYY00/cheat-sheet

Good luck!

2 Comments

  1. Pingback:DAX Index 03-07 December – Tecet

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