DAX consolidation below record highs going on. The trend is still up, but piercing of the upper bollinger band on record day was reversed promptly as the market was overstretched. A move down to the 20-day SMA (11.650) is very likely before further upside is in play. Fundamentals speak for a continuation of the uptrend as the weak Euro-currency helps German exports and the country’s bond yields are at record lows. We are buyers on pullbacks to support and don’t consider shorting this market just because it has run too far too fast.
DAX-30, hourly chart:
Chart from Stockcharts.com
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