Bullish & Buy at 6935.0 with a stop at 6892.5
Against a background of bullish signals for DAX sentiment this week, yesterday's forecast was bearish. This was confirmed with initial losses of 51 Pts, but as has been the case since the beginning of August, dips are attracting buyers and rallies sellers; Wednesday's trading recovering to close little changed on the day overall. It also keeps the immediate outlook difficult to interpret. However, on balance the recovery has left a cautiously positive bias going into Thursday, allowing room to buy a dip at 6935.0 with a stop loss at 6892.5. The initial target to take profits is near 7000.0, a break here improving sentiment to 7019.0/.5, this week's daily tops and then towards 7051.5, last week's high trade.
The risk however would be with selling through a stop at 6892.5, yesterday's low, a negative signal exposing sentiment to 6870.5, last week's base.
UPDATE 07:05: : Today's bullish signals are being confirmed with a strong open, but this has left intraday sentiment overtsretched and the stop more difficult to place. We would reduce some exposure and raise the buy dip and stop levels to: - buy at 9380.0, with a stop at 9350.5.
|Intraday||Bullish & Buy at 6935.0 with a stop at 6892.5|
|Week||Cautiously & Temporarily Bullish Above 6833.0|