The DAX Index has continued to prove fast in early trading this morning and is currently challenging important highs.
Trading in the DAX Index opened again this morning with a flourish of fast trading, as a low was tested and then the ability to demonstrate a spike upwards quickly was displayed. As of this writing, the German index remains within its loftier territory and early calls from US future markets are pointing towards a strong and positive start in America.
Speculators may want to keep their eyes on the 13450.000 mark via the DAX Index. If this level is broken higher and buying mounts, the 13500.000 could face a swift challenge. Psychologically, the DAX Index is now trading above important highs made in early September. If the index is able to sustain its current values and produce further buying, the next test of resistance will come from marks attained in late January and February of this year.
While some analysts may question where current values are being quantified from, speculators should continue to pursue what appears to be the considerably strong behavioral sentiment which is sparking this move upwards. Trading was rather volatile yesterday, which was expected as global indices returned to full volume following the arrival of US financial institutions after their long holiday weekend. It should also be noted that today is the first day of a new month, meaning investment houses may be in the mood to add to their positions and not be worried about end of the month book balancing.
Technically, the DAX Index is certainly within high waters, but these marks have been seen before. Yes, in early September of this year a strong reversal lower began to ensue and the German Index traded around the 11500.00 juncture towards the end of October. The month of November, however, saw a return of risk appetite, particularly in the wake of the US election results, and the bullish trend has been clear.
Buying the DAX Index at its current levels may feel speculative - and it is - but market direction appears to be bold and positive. Traders who are cautious may want to buy the DAX Index on slight pullbacks, but they will risk not being able to get into the game if the index continues to advance higher. If trading maintains near the 13400.000 level early today, speculators may believe there could be another dash higher sooner rather than later.
DAX Index Short-Term Outlook:
- Current Resistance: 13450.000
- Current Support: 13340.000
- High Target: 13512.000
- Low Target: 13286.000