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Technical Research Note: DAX Index – UnumCapital
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Technical Research Note: DAX Index

Technical Research Note: DAX Index

DAX Index – Daily Chart

The index has remained range-bound for the past 5 weeks, finding support at 10245 and resistance in the range of 10862 to 11000. The price has shifted outside of the short term upward channel (from the 16-19 March lows) whilst losing both the 8 and 21-day exponential moving averages and simultaneously triggering a bear flag pattern. Whilst the shift outside of the channel suggests a bearish rollover, traders should keep in mind the potential for a re-test/back-test of the breakout level, which in some cases are often sharp. Here’s a scenario you want to consider: what if we close the first downside ‘gap’ at 10097, then make a bullish reversal in enact the aforementioned channel breakdown and backtest. I’ve denoted the potential price action on the chart.

Lester Davids

Trading Desk Analyst

Unum Capital (Pty) Ltd
An Authorised Financial Services Provider (FSP 564)


T: +27 (0)21 201 7270             W:  www.unum.co.za             E: lester@unum.co.za


Lester Davids

Lester joined Unum Capital in July 2016 and is a Trading Desk Analyst focusing on local (JSE) and global multi-asset class technical strategy and research which includes idea generation.

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