Equity Indices Monthly (Jun ’16)
The German DAX steep reactive rally from the 8700~ low of February is intact, with rising momentum and the bullish Tension Indicator suggesting scope for a test of the 10,474~ high of April and 10,545~ retracement. A break will turn investor sentiment bullish and open up congestion around 11,000, but tests could be limited in consolidation as longer-term studies continue to weaken.
Support is down to 9500 and extends to the 9325 low of September 2015. In the coming months, risk is for a break of here, with focus then turning towards critical support at 8700~.
A subsequent break will confirm continuation of the April 2015 bear trend.
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