Review:
Following the late Wall Street rally and positive guidance from Asia, the German stock market barometer started the new trading week with a larger upward price gap and at times climbed back above the 14,200 point mark. In the morning, however, profit-taking unsurprisingly set in, pushing the index back below 14,100 points.
Outlook:
In the morning, the index retraced to the horizontal support around 14,120 points in the area of the SMA100 in the hourly chart. If this level can be defended in the coming hours, a further buying wave towards 14,300 points – potentially significantly higher – is preferred. Below this outlined support, however, further declines towards 13,930 points would be expected as a minimum. The risk can thus be clearly defined in the short term – above 14,120 points, the bulls have the better cards, below which the bears take command.
