DAX: Further weakness over the next couple of months – Credit Suisse
|The DAX has rebounded and is undergoing a classic ‘neckline’ retest to the very large recently completed ‘double top’ at 10279, economists at Credit Suisse inform.
Key quotes
“We expect the 10279 level to cap and for further weakness over the next couple of months, with important support at 8689/8256, the 2020 low, February 2016 low and 50% retracement of the 2009/2020 uptrend.”
“The ‘measured top objective’ roughly coincides with the 61.8% retracement at 7742 and 7485, where we would start looking for signs of a floor.”
“As above, important resistance is at 10279/390. A clear and closing break above here would negate the top to suggest a sustainable low may well be in place, which is not our base case for now.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.