Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Darius Anucauskas

DAX is Still Feeling Weak

Even though DAX was recovering this week from the losses incurred last week, still, it seems that the bulls are not as strong as they think they are. The index, at the time of this analysis, is testing the important 12100 resistance zone, which acted as a strong area of support back in June and August. At the same time, we can see that the bulls are struggling to overcome that barrier. Such activity is not adding confidence over the possibility for the German index to move higher in the near term. For now, we will remain somewhat bearish and await another possible wave of selling.

Overall, DAX is trading below its downwards moving trendline, taken from the peak of the 14th of June, which is still supporting the bearish case. Also, if the 12100 level continues to hold strong and the index won’t be able to close above it, this could be a good sign for the bears to stat jumping in and taking advantage of the higher price. This is where we could see a move back down towards the psychological 12000 area, a break of which, could set the stage for further declines. The next support line to keep an eye on could be seen near the 11890 hurdle, marked by the low of the 7th of September. If that doesn’t break the fall, keep a close eye on the 11700 barrier, which was near the lowest point of this year.

Alternatively, for us to start examining higher levels, at least for the short-run, we would need to see a break and a close above the 12300 level, marked by the low of the 31st of August. Further acceleration of the price could lead to a test of the 12400 obstacle, or even the aforementioned downside trendline, which could stall the German index at least for a while, until the bulls and the bears decide, who takes the driver’s seat from there.

DAX daily


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2018 JFD Brokers Ltd.