Dax Outlook Week 42

What a week. On stronger sentiment and news changing to a more positive outlook on the slowak parliament´s vote most shares rebounded strongly.

Bullish news is that we broke the recent downtrend and even managed to break above some of the EMAs on the Dax. The VDAX also came down from previous highs around 47 to a more relaxed 32 now. On the other hand the index tried was trading since wednesday just below the 61.8% Fibonacci level at about 6070 and didn´t have the strength to cross it.

Keeping that in mind together with an overbought RSI and also a drying up of the recent good news, I could see the Dax trading lower again in the coming week retreating to levels around 5600.