Tuesday, March 13, 2012

Dax technicals 13.3.2012

Buyers have calmed, but sellers are not very enthusiastic. Overbought condition has been easening lately, but we can still see no sellers. However, topping process may last months. 

McClellan Summation Index is trying to return into uptrend. That's why yesterday's trade was to buy low beta stocks.

In a technical perspective, Dax is facing heavy resistance at 6976-6990. This is a third time to test this resistance. If we get some really surprising positive news and get above the resistance, Dax could climb to 7400. If it fails and falls below 6621, then the low target should be around 6270-6300.