DAX – Q1 call makes 1200 Pt profit – is the sell-off over ?
12th January 2016
Our signals for Q1 have identified a bearish outlook, with investor sentiment posting lower quarterly highs since April’s record top at 12429.5 and with futures trading below their key 50, 100 & 200 day average rates. These have already been confirmed with a 1,200 Pt sell-off in just 2 weeks. However, our DAX analysis has also highlighted the importance of a monthly bull trend and as anticipated this trend is attracting profit taking buying today. The recovery may last for the rest of this week or even longer, but it remains signalled as being temporary and corrective and most likely limited to last year’s 10729.0 close. We are looking to add to DAX shorts ahead of this level or on a clear break of the monthly bull trend.
