DAX uptrend maintained

Price at time of writing – 8591.

An 84-point decline since my last update on 23 September has taken the German index down by around 3% from its recent all-time high. 

Given the noisy background of fear-mongering emanating from US politics, this is a solid performance. The uptrend remains entirely intact.

In my last update I noted a new, isolated obstacle on the path towards my major target at 8972. I found this by adding a line to the chart representing an 8.33% rise from the minor low in early September, a Gann-percentage that will often trigger a degree of short-term resistance. And so it has proved to date. As I mentioned in that note, however, a rise to 8972 is still the most likely outcome, although we should stay aware of all the obstacles along the way. I will watch this level carefully for signals on any forthcoming retest. 

The DAX has a comfortable cushion beneath it before the uptrend becomes threatened. Minor support in a band defined as 8345-8373 needs to be breached before raising any concern. My current stop-loss recommendation is based precisely on this unlikely event occurring.

Recommendation: stay long. Central target 8972 (within a broader band defined as 8942-9048). The stop-loss can be activated on momentum below 8300.

German DAX chart

 

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