Witches Sabbath on the EUREX

Circus in the British Parliament

Barely two weeks before the planned Brexit, the British Parliament has now voted in favor of a postponement. With 412 to 202 votes, the politicians voted for an extension of time. By an overwhelming majority, MEPs opposed a second referendum on the EU's exit. For the time being, Prime Minister Theresa May will continue to maintain control of the Brexit process. Chartically, the DAX 30 holds after this (x-th) vote above the June 2018èr downtrend. The nervousness, however, is still noticeable and apparent. Today comes even the triple decay on the futures exchanges. This could lead the German leading index to 11,700 to 11,800. The 200-day line tends to hit 11,794. This also corresponds to the neckline of the 2018 SKS formation. In addition, the Upper Bollinger Band "greets" at 11,694 points. It remains highly straining and the market participants sensitive to each message. Market-technically, slow stochastic yesterday presented itself with a buy signal. The trend follower MACD is (still) neutral. It seems that scenario number 1, which was discussed yesterday, prevails: the German leading index holds the 11,500 sustainable and negotiates the 11,800, then mid-term quotations around 12,500 are possible. However, if the German leading index falls below 11,500 again, then the downside mode would be reactivated (scenario 2). Stop & Take Profits therefore keep on (!). The witches dance today and it can therefore come during the day to irrational movements. Nice weekend.

 

 

Leave 2018's downtrend

Witches Sabbath & View of the 11,700

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