Future markets in the US are indicating a mixed opening, but the Dow Jones Industrial is pointing towards a negative start, which is likely having an impact on the DAX Index.
Support near the 13210.000 may be targeted if downward momentum continues to be sustained short term, and if this level is punctured lower, it could set off a rather volatile day for the DAX Index. Speculators who want to pursue the downward momentum which has suddenly emerged need to be nimble and on the outlook for reversals higher. While negative talk about the coronavirus certainly haunts the minds of investment institutions, they also have been led to believe vaccines will become available relatively soon, which may temper their collective fear.
Technically, the DAX Index failed to challenge higher resistance levels the past two days, and this short-term weakness may be a simple cycle following the rather strong bullish move made the past two weeks. However, for bullish sentiment to maintain some semblance of power within the DAX Index, current support levels will have to hold. Traders should expect choppy conditions near term as risk appetite is tested in the global markets.
Speculative traders may believe more downside momentum will be generated, but may be tempted to place limit orders near support levels in order to pursue potential upward reversals. However, traders need to be ready for dynamic conditions and should monitor US future markets closely to gauge sentiment, which may prove rather fragile today as coronavirus grabs headlines.
It appears the DAX Index may experience downside choppy conditions short term, which will test support levels. Speculators who believe bullish momentum will rejuvenate should look to see if the current value of the DAX Index can sustain its relatively strong range and produce slight upward movement when support junctures are challenged. Buying the DAX Index on pullbacks near support of 13230.000 to 13,210.000 is speculative short term, but may prove worthwhile.
DAX Index Short-Term Outlook:
- Current Resistance: 13300.000
- Current Support: 13210.000
- High Target: 13352.000
- Low Target: 13175.000
