The Dax 40 whipsaws due to the risk of contagion from Chinese real estate developer Evergrande defaulting.
The tentative break of the daily support at 15050 has put leveraged buyers under stress. A combination of short-term profit-taking and buying-the-dips mentality has triggered a sharp rebound.
15520 is the first resistance ahead, then the bulls will need to lift 15800 to make a turnaround. In the meantime, an overbought RSI may limit the V-shaped rally. 15020 is fresh support in case of a relapse.
