Stocks setback, but looking for a bounce – DAX Forecast

Intermediate
  • A shift towards a “risk off” theme Tuesday, with US stock averages staging a late selloff and “risk” currencies dipping lower.
  • There was no real catalyst for this move, with shares indices trying to stage rebounds ahead of the European stock market openings on Wednesday.
  • A key focus today will be a speech by Fed Chairman Powell.
  • Here we look at the rebound bias for the future on the German benchmark stock average, the DAX.

DAX Future day trade outlook: Looking for a rebound after late selloff

A Tuesday consolidation and then a late selloff and lower overnight through 10734 and 10684/657 supports, but to hold again at the 10535/519.5 support area, at 10567.5, to just retain positive forces from the early May rebound from 10367.5 and the strong, late April rally through the mid-April peak at 10811.5 to 11337, to just keep risks higher into Wednesday.

  • We see an upside bias for 10774; a break above aims for 10898.5 and 11030.5/057.5.
  • But below 10567.5 aims at the 10535/519.5 support area, maybe 10367.5/322, even 10223.5.

DAX Future intermediate-term outlook

The late February plunge below 13219 signalled an intermediate-term shift to a bear trend.

  • Downside risks: We see an intermediate-term bear trend and risk for 7422 and 7000/6948.
  • What changes this? Above 11417.5 sees an intermediate-term range and through 12275.5 an intermediate-term bull trend.

4 Hour DAX Future Chart

dax chart

Editor in chief

Steve Miley is the Market Chartist and 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 Mar... Continued

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