The DAX Index remains within a stubborn short-term range as resistance above remains a target for bullish speculators.
The DAX Index has produced cautious values the past day, but importantly the German index has also maintained its loftier heights much like international counterparts. The DAX Index opened trading this morning with slight declines, but it has not punctured important support levels lower. This ability to sustain relatively high values and not suffer from a severe dose of profit taking will likely create more interest from speculative bulls.
Early calls from US future markets have reversed higher within the past hour. Trading has been mixed in US equity indices recently, but like the DAX Index they continue to flirt with higher values without having suffered a dramatic drawdown. Global risk appetite remains steady and optimistic investors may be targeting very important psychological levels.
One key ‘outside’ factor in global trading remains the Dow Jones Industrials which is hovering slightly below the 30,000 mark. It would take a significant amount of buying short term to push the famous index above the 30,000 juncture, but if it occurs, the attained number would resonate within financial institutions worldwide.
The DAX Index has certainly experienced the values it is traversing before and speculative bulls have been hurt previously with significant reversals lower. The question is if this time is different? On the 29th of October, the German index was trading near the 11425.00 level, but this feels like ‘light years’ in the past, taking into consideration that the results from the US election have sparked a significant bullish impact.
Current support levels do look adequate near the 13060.00 level. Speculators looking to buy the DAX Index on the belief that optimistic trading will continue to percolate and create positive momentum cannot be faulted for looking at potential targets above and believing they may be attained. However, it will be wise to use risk management while pursuing risk taking.
Global indices have certainly proven cautious the past day-and-a-half, but they also continue to sustain important values near key resistance junctures. It is clear that the DAX Index, along with other equity indices, is waiting for impetus to break through resistance. After failing to achieve a significant rise higher and puncture stronger values, speculators may believe the time is approaching for a climb upwards that will be generated and puncture existing resistance levels.
DAX Index Short Term Outlook:
- Current Resistance: 13182.000
- Current Support: 13060.000
- High Target: 13230.000
- Low Target: 13018.000