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Technical Analysis: DAX 30 : continuation of the bearish correction

GERMANY 20

The DAX 30 Index comprises the thirty most important stocks ​​listed on the Frankfurt Stock Exchange. It presents an uptrend supported by the 200-daymoving average.The latter is however challenged by the violent bearish correction initiated following the reintegration of the major resistance at 7230 points. We are now neutral in the medium-term: rises will be limited in amplitude for the coming months....


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Day By Day – Indipendent Research


21032011 1


 

Close price 6809,56

2 months Opinion NEUTRAL
2 weeks Opinion NEGATIVE

Resistances 6843 / 6948 pts
Supports 6460 / 6341 pts

Anticipation  :
More recently, the corrective movement was stopped with the contact at the 6654 points level, currently being tested. It is an important threshold; it is a 50% retracement of the previous impulse and is reinforcedby the 200-day moving average.However, the lack of a candid reaction and the inability of the prices to close the bearish gap, argue for a testimony of the seller and argue for the current continued correction.We are short-term negative, and considering the rallying towards the major support at 6,341 points, with an intermediate target of 6460 points (62% retracement).
We set the invalidation threshold for this negative opinion slightly above the 6843 resistance point (38% retracement).


Traker’s Name Leverage Expense ratio
AMUNDI ETF SHORT DAX 30 x-1 0,35%
db x-trackers SHORTDAX ETF x-1 0,40%
LYXOR ETF DAILY SHORTDAX x2 x-2 0,60%

* A leverage of 1 means that the ETF/Tracker has the same performance as the underlying index. A leverage of 2 indicates that the ETF/Tracker will have twice the performance of the underlying index. A leverage of -1 indicates that the ETF/Tracker will perform opposite that of the index: it will rise while the index falls, and vice versa.

 


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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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