DAX monthly chart: Will the year-end rally become a reality or will prices remain falling?

DAX monthly chart: Will the year-end rally become a reality or will prices remain falling?

According to a report by www.finanzen.net, the DAX, together with the S&P 500, has recorded a significant increase in the last few days and experienced a strong recovery. Many market participants are hoping for a year-end rally, but according to the monthly chart, prices are likely to fall again.

The monthly chart shows that the 10-EMA is trading in the area of ​​15,300 points and largely coincides with the upper Fibonacci fan in the monthly chart. In long-term upward movements, the 10-EMA in the monthly chart repeatedly served as support where the DAX bounced upwards. After the price slide of the previous months, the 10-EMA has become resistance. It is likely that the DAX will bounce back down in this area and is currently only recovering and in its first retest in the new downtrend of the 10 EMA.

Traders could therefore open a short position in the trend direction around the 10 EMA on the monthly chart. A short position is possible with a Turbo Short warrant (MA2HPL) from Morgan Stanley, with a price target in the range of 14,500 points and a stop at 15,450 points. The article concludes with a table that contains further details about the trading idea for the DAX.

As an economic expert, it is important to note that the development of the DAX and the recommendation for a short position are based on extensive technical analysis. If the DAX actually establishes itself sustainably below the resistance levels mentioned, this could lead to further price declines, which market participants should take into account. It is advisable to consider additional fundamentals and external influences to make informed decisions.