DAX: Short-Term Sell
DAX, 4-Hour Chart Analysis
The DAX new all-time highs today, following our short-term buy recommendation two weeks ago. The German index kept on pushing higher this week in the face of the overbought conditions and it’s now above the dominant long-term trend line, suggesting a correction in the coming days. Those traders who are still holding on to a part of their longs should consider exiting their positions at these levels.
The second round of the French election might provide a sell-the-news event, as the favorable first round results already caused a surge in European assets. The continued weakness of the broad US indices also warns of a possible correction, with the 12,400 support giving traders a good initial target.