- Summary:
- Dax index reacts to the risk-off movement and trades with a bearish tone. The rejection from dynamic resistance puts further pressure on the index.
Dax index got rejected at dynamic resistance as the world finds out that the coronavirus mutates. Over the weekend, the United Kingdom announced that it found a new variant of the virus – one that spreads much faster than the previous.
On Sunday, several countries suspended their flights with the United Kingdom. Moreover, Italy announced that the new virus’s variant was identified in the country too. With all Europe already in some sort of lockdown, the risk-off move became imminent.
This is a shorter week than usual, and there are no important economic events to watch. However, because of the depressed liquidity, the danger exists that market moves will be much more powerful than usual.
Stimulus talks in the United States, as well as the S&P500, will also influence today’s Dax volatility. Tesla is included in the S&P500 starting with today, and it will have an impact on all financial markets.
Dax Index Technical Analysis
The chart below shows how the Dax was rejected three times at the dynamic level and closed higher last Friday. Bears would want to stay short with a stop loss at Friday’s highs and target a move back to 11,500 and below on a strong risk-off event. Only a reverse and break above Friday’s highs would invalidate the rejection.
Dax Index Price Forecast
