Dax Outlook 2016 W11

Dax Outlook 2016 W11

What a week! On thursday when the ECB expanded their QE programme and set interest rates to Zero, the Dax first shot up to nearly 10’000 points just to fall a few minutes afterwards to below 9’500 on Draghi’s comments. The EURUSD traded in a range of -1.5% to +1.5% in similar manner. On Friday the Dax digested the news and traded up again closing the week around 9’830.

The MACD is bullish, the RSI is at 56.63 and the VDAX at 22.08.

In the end the ECB’s policy of supplying the market with even more money, increasing bond buying volumes from 60bn to 80bn pcm, should be positive for shares. The export-heavy Dax though is suffering when the € rises, which leads at times to heavy drawdowns.

From  the lows around 8’700 in mid February, the Dax has recovered around 1’100 points. The Dax should keep on this recovery unless we make a new low below the 9’540s. Therefore it could start a new attempt on the 10’000 level in the next week.

Support:            9’750, 9’600, 9’360, 9’214, 9’000, 8’903, 8’500

Resistance:       9’850, 9’930, 10’000, 10’150, 10’320, 10’570, 10’800, 11’000, 11’200,  11’286,11’380, 11’400,11’600, 11’800, 12’200,  13’500, 14’000, 14’500