DAX index price action
Very much subdued tone this morning for equity markets – this is also reflected in US index futures and as well as other risk assets. Chinese stocks performed better and Nikkei225 closed the day with the slight gain – all basically following some blah-blah from Chinese administrative officials, standard and formal promises to boost the economy.
There were not so many optimistic comments regarding the US-China deal recently and there are obvious disagreements there. Both sides really want a deal, but it is a big question how this deal will be achieved – devil is in details, as usual.Reportedly, US-China summit is moved to the April.
In the absence of news, we refer to the technical picture. Dax 4-hour chart shows the index is on bullish run that has recently stuck. Therefore, we will be looking for the retracement to enter the longs. Below we see the minor support at 11540, but I would skip this one and will bet instead on 11350-11400 resistance cluster. There is a decent support where we will place the limit Buy orders.
Aggressive trader can go for the short trade from current price levels with mandatory tight stop at 11680, which is a recent maximum – this is a tactical short and a risky one – because going counter-trend. However, in case of retracement this is a very good opportunity to capitalize on.
Have a nice weekend !