DAX bear threat – DAX forecast

Intermediate
  • A plunge in global equity markets to start this week after a weakened close last week has seen stock indices wipe out important support levels already.
  • European equity averages are starting to play catch up with their US counterparts, having held in previously with Euro (EURUSD) weakness.
  • Here we look at the German benchmark average, the DAX, which is setting up for a far more negative signal.

DAX day trade outlook: Intermediate-term shift to neutral, bear threat to 12199.5

Day trade update and view

A plunge lower Monday to wipe out multiple supports including key 12625.5, to reject the upside pressures from the mid-September recovery and strong, early September advance (to 13461), to shift the threat lower for Tuesday.

Day trade setup

  • We see a downside bias for 12478.5 and 12350/340; a break here aims for key 12199.5, 12064.5 and maybe 12000.
  • But above 12712 opens risk up to 12850/875, 13033.5 and possibly 13136.5.

DAX intermediate-term outlook

The late September sell-off below 12625.5 signalled an intermediate-term shift to a broader range seen as 12199.5 to 13244.5/279.

  • Downside risks: Below 12199.5 sets an intermediate-term bear trend to target 11589.5, 10856.5 and 10159/10000.
  • Upside risks: Above 13244.5/279 sets an intermediate-term bull trend to target 13461, 13824 and maybe 15000.

6 Hour DAX Chart

Dax chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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