The DAX confirmed a strong move up yesterday reversing the pressure of the last few days. The daily closing was very strong and in the monthly chart the DAX managed to confirm the previous month’s closing. We could well see a direct extension of the move up toward October’s top at 6442.
The indicators of the daily chart are now well positive as well as those of the s/t ones supporting further strength. However, overbought conditions in the hourly chart could limit a direct extension favouring even a correction. we need however an hourly closing below 6075 to confirm a small double top favouring a retest of the 6000 area.
We suggest however waiting a little longer for a short position because we feel the rally could continue suggesting a direct 6300 overshooting where we will try to short this index!!
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FUTURE TREND RESEARCH