DAX is trading lower after nearly 2-1/2-month continuous uptrend. The index has recovered more than 14% from low of 10306. The jump was mainly due to positive Brexit news and easing trade tensions between US and China has increased demand for riskier assets. Brexit uncertainty is major factor which is affecting European markets. According to The Telegraph’s Brussels correspondent EU-27 will reject Jun 30 extension date which has requested by May to get her deal agreed by MPs. The index has formed temporary top around 11826 and is currently trading around 11555.
The index is trading slightly below 200- H MA and 300- H EMA (11595 and 11580) and this confirms minor weakness and a dip till 11400 is possible.
The near term resistance is around 11680 and any violation above will take the index to next level till 11725/11826. Bullish continuation only above 11835.
It is good to sell on rallies around 11590-600 with SL around 11654 for the TP of 11410.
