ZuluTrade Blog

Volatile Days Coming for #DAX - Brexit & French Elections!

Market View | Thursday, April 6, 2017 6:01 AM GMT

Yesterday, DAX was volatile and troubled the intraday traders. This is just an indication on what is coming in next days. We should have in mind that within the Easter holiday liquidity will be low; therefore, sharp moves in intraday are expected. In addition, the French elections will take place on 23/4; the market will be very sensitive during polls and political news. In the meantime, we shall not forget that Brexit is activated. Some analysts believe that we may have funds transfer from City (London) to German stock markets (Frankfurt).  As you can understand, we need to consider many parameters thus any estimation may be fragile.

Let’s have a look on the technical view of DAX:


The German Index is within a rising channel. It could not stay above 12300 level and pulled back. In addition, we have noted MACD’s multiple negative divergences. As long as it remains within the channel limits, we are bullish on daily. 



The price has tested and reacted on the lower channel’s trendline as well as 50% Fibonacci level. It may potentially target on the upper side of the channel. As long as DAX stays within this channel remains bearish. If price violated the yellow zone, then we may have an accelerated downside move. 

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