DAX: Short-Term Sell
DAX, 4-Hour Chart Analysis
The weakening momentum, the negative seasonality, and the weak bounce off the Thursday lows justify a short-term short position in the German index, as we expect further correction in global stocks. The strong decline in the leading names of the NASDAQ is still affecting equities globally, and that could fuel a risk-off period with valuations still being elevated.
The 12,800 level is the short-term resistance for the benchmark, while a drop below 12,650 would open up the way towards 12,500 and 12,375, with an expected break below the rising long-term trendline. A re-test of the 12,250 level is also possible in the coming weeks.