Although the DAX Index was not able to penetrate resistance last week and challenge new highs, the index remains seemingly comfortable within its current value range. As the end of the year approaches, speculators may be beginning to look at the calendar and guess what will happen in 2021, but the next week of trading will be an important element regarding future direction.
The DAX Index has been able to achieve relatively lofty heights mid-term after facing a bearish test previously. The ability of the German index to reignite its bullish momentum is evident, but skeptics may point out that the DAX has not been able to genuinely puncture important resistance and is waiting for more impetus. However, what these same speculators should take into consideration is the ability of the index to sustain its value above the 13000.000 the past month, which may be an important bullish indicator.
Late last week, it is possible that some profit-taking took place in equity indices, but intriguingly, the major indices did not see violent downturns which may signal that investment houses will continue to pursue upside action. This will be the last big week of large volumes within the major stock exchanges before many financial houses begin to disappear as the holiday season approaches. This could set the table nicely for interesting days of trading this week as long-term investors essentially position themselves for the year to come.
Short-term speculators may logically conclude that trading sentiment will remain optimistic on the major indices including the DAX. Although some downward traction has been seen since the middle of last week, the DAX Index did not break through vital support levels and remains within attractive higher values. The current price vicinity is beneath highs made last week and speculators may have a chance to be buyers and pursue resistance levels as targets with relative comfort.
US future markets are indicating a positive opening today and they may bolster short-term confidence in the DAX Index too. The mid-term trend of the DAX Index has been bullish and, although resistance has proven adequate up above, traders may want to continue to buy on pullbacks and look for bullish momentum to percolate and challenge short-term highs.
DAX Index Short-Term Outlook:
- Current Resistance: 13270.000
- Current Support: 13185.000
- High Target: 13330.000
- Low Target: 13110.000
