Wednesday’s session was clear “windows dressing” situation, it happens always in the end of quarter. On DAX level 9,700 pts was key resistance. All German indices ended with grows: DAX +2.22%, MDAX +1.98%, TECDAX +1.98%, SDAX +1.78%. All of DAX companies gained, the most Lufthansa +6.24%, Infineon +5.21%, E.ON +4.93%, RWE +4.21%.
On the chart there was double bottom pattern created but it lacks typical strong bullish candle helped by volume. DAX is on trace of American indices, so when there will be decreases, the same will happen on DAX. On 9,780 pts there is fibo 38.2% retracement of last bearish move.
On Wednesdays there is publication of investors sentiment on DAX:
- institutional: bulls – 61%, bears – 26%, neutral -13%;
- private: bulls – 52%, bears – 31%, neutral – 17%.
There is big gain in institutional bulls since last week. That is bad signal for private bulls, because if institutions were thinking about grows, they probably already opened long positions.
DAX Future H1, closest resistances: 9,780, 9,880, closest supports: 9,510, 9,560, 9,700.
