Although the past few trading sessions for the DAX Index have been challenging for short term traders, the mid-term momentum of the equity index remains aggressively bullish. While skeptics abound regarding valuations of the global equity indices because of the inability to gauge quantified numbers for corporations within the shadows of coronavirus, the steady progression of upwards value cannot be denied.
The DAX Index has gained slightly this morning and it continues to trade near important resistance as it test higher values. As a correlation, US indices this morning appear ready to plot upward momentum via calls from the future markets. Interestingly, while US indices challenge record territories, the DAX Index has also shown strong gains. While short term profit taking remains a dynamic speculators have to consider in the CFD markets when trading equity indices which do produce reversals downward, they should also note that the trend remains clearly bullish under many interpretations.
Certainly, there is a difference between short term and long term trading with equity indices and risk sentiment is an important part of the trading landscape. However, picking the right side of momentum remains the critical part of the trade for short term speculation and while it is tough to sell against the mid-term bullish trend of the DAX Index, buying the German equity index is easier. Risk management is crucial with equity indices, proper use of leverage and stop losses needs to be carefully considered.
Buying the DAX Index within a price vicinity of 12890.000 to 12925.000 and looking for upside momentum is a preferred trade. However, entering the market in rather fast conditions can prove difficult and missing upward momentum can happen with limit position orders. However, the DAX Index does have plenty of volume, so putting in a market order at a preferred buying juncture may actually prove worthwhile, this way you put yourself into the trade quickly. But to do this you should gauge the price range you want to be a buyer and be careful of buying into a market that is producing a sudden burst of upwards momentum which leaves itself vulnerable to short term bearish reversals.
DAX Index Short Term Outlook:
Current Resistance: 12940.000
Current Support: 12880.000
High Target: 12980.000
Low Target: 12850.000
