The DAX Index is near important highs and maintaining a moderately tight range in early trading.
The DAX Index has been able to crush important resistance and is trading near the important psychological juncture of 13300.00 early this morning. Risk appetite has been optimistic, which has certainly helped lift the German index to highs. However, traders need to acknowledge that due to the lack of American institutional investors because of the Thanksgiving holiday today, mixed trading will likely pervade many global indices. Trading will be open in the US tomorrow, but volumes will be low and the results may not mirror the whole picture regarding behavioral sentiment.
This means the DAX Index will essentially trade on its own today without much impetus, which may lead to a day of mxied results. Speculators will want to keep their eye on a couple of pieces of evidence as the day progresses to gain insights regarding perception.
One: if the DAX Index is able to maintain values near the 13300.00 level, it may indicate that a large amount of investors believe they should keep their current positions in place and have the notion that equities will climber higher sooner rather than later. Two: if there is a lack of a sharp reversal lower today and the DAX Index politely trades within its current price range, this could give speculators the opportunity to place limit orders now and be ready for the moment when trading volume increases tomorrow and certainly on Monday.
Yesterday, US equity indices turned in mixed results, but this came the day after the Dow Jones broke an important numerical level. Yes, the Dow Jones 30 declined yesterday, but the selloff occurred with an acceptable percentage level and perhaps sets the table for a reversal higher when US investors return in full force. The DAX Index has had a tough time also trying to maintain its value level above the 13300.00 mark and, in many ways, the German index is a solid barometer of the Dow Jones movements.
The question that needs to be answered is if risk appetite will again show a desire for buying near term. Certainly, indications have shown that technically the major global indices, including the DAX Index, haave been able to puncture resistance short term and this may continue to happen. Speculators should think about buying the DAX Index.
DAX Index Short-Term Outlook:
- Current Resistance: 13325.000
- Current Support: 13244.000
- High Target: 13385.000
- Low Target: 13210.000