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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Dow, Nasdaq, and DAX range-bound at the highs

Holidays and a lack of fresh news kept the movement relatively limiting ahead of possible trade news this week.

NASDQA Source: Bloomberg

Dow Technical analysis, overview, strategies, and levels

All three indices in the report continue to show signs of stalling in their bull trend technical overviews, and in this case finishing slightly higher for the session after a brief drop intraday. The range-bound session wasn’t a surprise given the US holiday, though with the US president speaking tonight and trade in significant focus, breakout strategies may be more enticing over reversal or fading ones should it be accompanied by any significant trade news.

Dow Technical Indicators Source: IG charts
Dow Technical Indicators Source: IG charts

IG client and CoT sentiment for Dow

Retail bias is little changed from yesterday’s extreme long 79% bias, awaiting retracement back down given that nearly of those shorts were initiated at lower price levels.

Dow sentiment Source: IG charts
Dow sentiment Source: IG charts

Dow chart with retail and institutional sentiment

Dow Source: IG charts
Dow Source: IG charts

Nasdaq Technical analysis, overview, strategies, and levels

As with the Dow, the tech index’s technical overview remains a stalling bull trend on both the daily and weekly levels, with nearly all its main technical indicators continuing to flash green. However, unlike the Dow, the session finished slightly in the red but not that far off its recent record highs. Its bull trend line remains intact but gains intraday (and intraweek) have remained limiting and offering few decent breakout opportunities thus far.

NASDAQ Technical Indicators Source: IG charts
NASDAQ Technical Indicators Source: IG charts

IG client and CoT sentiment for Nasdaq

Retail bias here has also dropped slightly, but it too remains in extreme short territories at 77%.

Nasdaq sentiment Source: IG charts
Nasdaq sentiment Source: IG charts

Nasdaq chart with retail and institutional sentiment

Nasdaq Source: IG charts
Nasdaq Source: IG charts

Dax Technical analysis, overview, strategies, and levels

While the German DAX suffered yesterday, it has managed to stage somewhat of a recovery, no doubt buoyed by reports suggesting that the US president will announce a delay in this tariff decision on European autos and parts imported from the EU potentially for another six months. That should aid auto and parts makers that are part of this index, though the gains would be limiting until those reports are confirmed. German ZEW figures will also be released today, though are expected to continue contracting even if it shows improvement on last month’s -22.8 reading. From a technical standpoint, its bull trend line remains intact, but where any gains have been done in a limiting fashion.

DAX Technical Indicators Source: IG charts
DAX Technical Indicators Source: IG charts

IG client and CoT sentiment for DAX

Retail bias has dropped a percent but remains at extreme short territories at 81%, needing a far larger retracement for that short bias to drop and shorts initiated at lower price levels to take profit.

DAX sentiment Source: IG charts
DAX sentiment Source: IG charts

DAX chart with retail and institutional sentiment

DAX Source: IG charts
DAX Source: IG charts
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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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