The DAX confirmed on Friday further consolidation interior the positive outside day with 5820 – 5645 still the levels to follow in the coming hours. A daily closing below 5645 will extend the decline suggesting a test of the 5585/35 gap up area. The weak closing was weak below the low of the previous week, therefore below the 200 weeks line!!
The indicators of the daily chart are therefore still well negative as well as those of the weekly one supporting further downside risk. Those of the s/t ones are also negative keeping the DAX under pressure.
Only a break above 5810 will postpone further weakness favouring a rally toward the 200 hours line, now found at 5919, move that we expect to be corrective and a selling opportunity.
We are still long for a possible rebound. We will however increase our position in case of a 5550 undershooting!!
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FUTURE TREND RESEARCH