Technical Analysis

Retail Traders Resume Selling, More Gains Ahead?

Dow Jones, DAX 30, Technical Analysis, Trader Positioning – Call Points

  • Rising retailer short stakes Dow Jones and DAX 30 offer bullish signals
  • The prevailing upward trends remain intact, but the momentum may fade as risks subside
  • For an overview of the tool, see the webinar recording in IGCS

In this week’s IG Customer Assessment (IGCS) session, a tool for assessing retailer positioning, I discussed the prospects for Dow Jones and DAX 30. IGCS is usually a controversial indicator. For a detailed analysis, see the recording of the session above, where I discussed how to use IGCS in my trading strategy. I also addressed the main prospects for the two indices.

Dow Jones outlook – bullish

The IGCS gauge means that about 37.45% of retailers are Dow Jones industrial average. Exposure decreased daily and weekly by 10.37% and 18.21%, respectively. The fact that traders are short may keep prices going. The a combination of current and recent mood changes bids stronger bullish contrarian trading principle.

Dow Jones, DAX 30 forecast: Retailers will continue to sell, profits still ahead?

Technical analysis

The increase in support from March 2020 continues to maintain the dominant upward trend in the Dow Jones following the recent rise in prices. Item 34483 above the immediate resistance may open the door for re-examination on 10 Mayth high 35,000. But keep an eye on the RSI. Negative discrepancies may occur, showing a fading reversal. This can sometimes precede a lower turn.

Dow Jones futures agenda

Dow Jones, DAX 30 forecast: Retailers will continue to sell, profits still ahead?

The chart is created in the trading view

DAX 30 Sentiment outlook – bullish

The IGCS gauge this means that about 24% of retailers have a net length with DAX 30. The position decreased by 19.70% and 22.87% daily and weekly, respectively. The fact that traders are short suggests that prices may continue to rise. Ta combination of current moods and recent changes offers a stronger bullish contrarian trading principle.

Dow Jones, DAX 30 forecast: Retailers will continue to sell, profits still ahead?

Technical analysis

The DAX 30 tries to rise to the new all-time high, but in 15501 fights around the main resistance. A negative RSI discrepancy warns that the uptrend is slowing down, which can sometimes precede a lower turn. Such a result could target support at 14816, the lowest level in April. However, a 50-day SMA would be able to keep the focus upward. The profit extension reveals the focal point of the Fibonacci extension 15911.

DAX 30 daily schedule

Dow Jones, DAX 30 forecast: Retailers will continue to sell, profits still ahead?

The chart is created in the trading view

* IG customer mood charts and positioning data used from May 25thth Report

– Written by Daniel Dubrovsky Strategist to DailyFX.com

Use the or comments section below to contact Daniel @ddrovrovskyFX Twitter

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