the daily chartist

DAX30 recap for 09.02.2016

published 4 years ago
DAX Daily

On the European front, DAX30 is looking even worser than the S&P500. At least they hold some ground there, the DAX (and the rest of Europe's indexes) are bleeding out fast. This sharp risk-aversion contributes to the strength of the euro. DAX dropped towards 8768.6 and managed to push up a bit. This is the near-term support, on the top side we have 9249.4 and 9310 zone that will put some pressure on the price. Everything depends on the moods of the investors - the bearish sentiment rule for sure at this time and stocks are suppressed hard as money flows in-to gold and euros. Swiss Franc is lagging and isn't that much of a safe-haven destination. Dollar is just being dumped. The same strategy apply for the DAX - buy the dips, be aware of sentiment changes. Strong DAX indicates weak euro so play them both in their correlation sequence. ECB policy moves are met with a very sensitive reaction and I have to mention the bank meltdown in Europe, strongly from Deutche Bank's massacre loosing 40% of their stock value, though the German authorities responded to the situation like: everything is fine... So again - apply caution, trade with care.