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DAX Technical Analysis for December 30, 2015


The DAX has pushed higher past 10,880 levels as expected and discussed earlier. Beware though, the indice may soon hit into the resistance zone around 11000/100 levels as depicted here on the daily chart. Looking into the possible wave structure, the drop from 11,400 levels through 10,100 levels looks to be an impulse. If this count is true, a corrective 3 wave rally is underway now, which could possibly end around 11,000/100 levels. The indice is expected to push higher towards 11,000/100 levels from here during the next few trading sessions and then reverse lower. Immediate resistance is seen at 11,000 levels while support is seen through 10,600 respectively. Also, the RSI is soon approaching 70 levels, which is also complementary to a bearish outlook going forward. Watch out for the counter trend rally fazing out around 11,000/100 levels.

Trading recommendations:

Exit long positions ahead of 11,000 levels and enter short side there.

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