Jump to content

DAX and CAC Technical Outlook: Big Gaps Bring Support into Play


Recommended Posts

DAX/CAC TECHNICAL HIGHLIGHTS:

  • DAX gap down has major support in focus.
  • CAC gap also has trend-line in play, but less significant.

DAX and CAC Technical Outlook: Big Gaps Bring Support into Play

DAX AND CAC TECHNICAL OUTLOOK: BIG GAPS BRING SUPPORT INTO PLAY

Global stock markets are taking it on the chin today as pandemic news hits the tape. This has two of the most important European indices testing support to end the week. The DAX is down nearly 3% into a series of support levels.

The 200-day moving average is currently at 15383 and two slopes/trend-lines are also in confluence. One line runs up from the March low and the other from a low created in November of last year. This confluent area of trend support makes the gap into it especially interesting.

This could be a significant buy the dip opportunity for would-be longs if support can hold. Seeing the big gap lower maintain and the price of the DAX closing significantly higher than the open could see a bottom get forged, at least in the near-term.

Would-be longs may want to use today’s low at 15282 as a backstop with the first upside target set at a gap-fill up to 15917.

DAX DAILY CHART

dax daily chart

DAX Chart by TradingView

The CAC is down well over 3% at the time of this writing and also gapping into trend support. It’s only one line of support so it’s not as meaningful as the DAX, but nevertheless it is support. If the German counterpart holds its more meaningful levels and rallies, then the CAC should as well.

The low of today is worthy of using as a backstop next week in the event we see the current bid off the lows hold; that levels clocks in at 6736. The first target is a gap-fill up to 7075, followed by the record high at 7181.

CAC DAILY CHART

cac daily chart

CAC 40 Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

 

Written by Paul Robinson, Market Analyst, 26th November 2021. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,646
    • Total Posts
      97,092
    • Total Members
      44,203
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Koslanda50
    Joined 07/12/23 10:27
  • Posts

    • @espiral, A higher broker margin requires a high margin which needs to be transferred to the client which would make offering this stock expensive for our retail clients. Thanks, KoketsoIG
    • I do not understand it.  What is the difference between this stock and other Toronto stocks with much less market cap that are available with leverage in this market?
    • Dear @espiral, Thank you for your response. Please note that we cannot offer this stock on leveraged accounts and it is only available for non-leveraged accounts. This is because of the higher broker margin which would need to be transferred to the clients. Thanks, KoketsoIG
×
×
  • Create New...
us