Dax Forecast: May 26th, 2015
Jason Sen | May 26, 2015 06:38AM ET
DAX running out of steam as we become overbought. Risks of profit taking grow and failure to beat 11,840/830 retests first support at 11,780/770. Less chance this will hold today, so be ready to go with a break lower to target support at 11,735/730. We could try just small longs with stops below 11,690. We then meet strong support at 11,670/660. Buy here, stop 11,620. Target 1 at 11,720 (trail stop to entry), target 2 at 11,760.
First resistance at 11,890/11,900 has held for 4 days and we should struggle here again today! However, a break higher not out of the question, so be ready to target 11,935/940. Gains are likely to be more limited in overbought conditions, but if we continue higher, look for resistance at 11,980/990, perhaps as far as late April highs of 12,085/12,113.
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