DAX 30: Possible test of 9775, better data from China

The passing of the index above the inner bar after two bars with equal bottom shows, that the negative sentiments are over. Now, however, the price couldn’t pass over the previous peak or under the bottom which tells us about a possible consolidation between the levels on 9775 and 9704. The crossing of the index on one of these levels will give us a signal for a direction. In this situation it is better to stick to the long positions, while the entry levels should be near to the support level on 9704 with a stop below it.

The trend is upwards, but the price had moved from the temporary market bottom on 9614. This makes the long position on the current levels risky. The appropriate levels to buy are near the support on 9775 and 9614.

The volatility of the stock market will increase in the coming days as the indexes in the U.S. are back on their record levels, and the season of the financial statements in the U.S. is in full swing. The high levels will cause investors to be cautious before the data, which will determine the mood. Therefore, any slight adjustment may be used for new purchases.

The sentiment this week will be determined by the financial statements of U.S. companies.

Varchev Finance

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