Two trades to watch: Dax, Brent
Fiona Cincotta February 8, 2021 8:06 AM
Dax hits fresh all time high. Brent strikes $60 a level last seen pre-pandemic.
Dax hits fresh all time high
An upbeat mood in the market is lifting the Dax as investors cheer the prospect of additional US fiscal stimulus after Friday’s NFP report.
Dax technical analysis
After slipping lower in late January, the Dax found support from the lower band of the ascending trend line pattern on the daily chart. It rebounded steeply higher.
The Dax trades above its 20 & 50 sma on the daily chart confirming a bullish trend.
The RSI is above 50 but below the key overbought 70 level supportive of further gains.
Immediate support can be seen at 14195 the fresh all time high hit today. The price has since eased back slightly, a move over this level which also coincides with the upper band resistance of the ascending trendline is needed before the Dax targets 14500.
On the downside support can be seen at 13850 20 sma prior to 13650 the 50 sma. A move below 13500 lower band of the ascending channel would negate the current uptrend.
Brent strikes $60 per barrel, appears overbought
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