Cautiously & Temporarily Bullish Above 6833.0



R3 7196.5
R2 7108.0
R1 7051.5
S1 6833.0
S2 6765.0
S3 6620.0

Bullish DAX sentiment since June has stalled in very low volume over the last two weeks. This has occurred with futures trading close to this year's 7196.5 high made in March. With momentum indicators also slowing, the potential for a temporary profit taking pullback is growing. However, last week's losses tested, but failed to clearly end a sequence a higher weekly lows. Investors also bought the dip from in front of 6833.0, a 50% pullback to last month's gains (6552.0-7108.0). So although last week's unchanged close has left no strong trend, there is a cautiousand temporarily bullish bias going into this week above a stop and reverse at 6833.0. The initial target to take profits is near 7051.5, last week's high, a break here improving sentiment to 7108.0, last month's top and then towards 7196.5, the 2012 peak.
The risk however would be with selling through a stop at 6833.0, the 50% Fibonacci, a negative signal which would change the outlook to bearish below a stop loss at 6957.0, last week's close, exposing sentiment to 6765.0, a deeper 62% correction and then towards 6620.0, a weekly bull trend.

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WeekUp Cautiously & Temporarily Bullish Above 6833.0