DAX Market Review, November 2018

DAX Market Review, November 2018

01 October 2018

DAX progressed in a bearish trend channel during October and was at worst down -10% but managed to recover towards the end of the month and ended at 12450 which is roughly a -6,5% decline from September close. DAX is currenlty below EMA 6 and EMA12. Both averages are also declining and ema6 has crossed below ema12. October decline did also break the bullish trend channel from 2009 lows and it remains to be seen, shall we draw a corrective channel or a new bullish trend channel next.

First important support is at 11000 and first major resistance is at 12000. Technically DAX is in an intreseting situation; RSI has crossed from below the level 30 which has been the last 10 years a bullish sign. It is likely that the high volatility continues upcoming month

Long-term resistance levels: 11000, 10600, 9900, 9000
Long-term support levels: 12000, 12850, 13500

On the weekly chart, DAX is progressing in a declining trend channel and is currently in an corrective bullish move. First more important resistance is at 11900. RSI has crossed from below through the level 30. If the same market rotation continues as seen this year, we will still see another leg down which could bottom around 10750.

Support levels: 11200, 11000
Resistance levels: 11950, 12000
Since 1997 November has mostly been bullish.

SInce 1997 November median return has been +3,76%.

DAX underlying instruments are all below its 20 day moving average which is possible a "oversold" bullish signal".

DAX McClellan oscillator crossed zero line from below and also made a bullish divergence.

17/10/2019 03:37:15

 

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