Since trading over the 14000.00 level on late Thursday, the DAX Index has reversed lower as more impetus is awaited.
The DAX Index has delivered a barrage of short-term volatility, but today’s trading may prove to actually be rather cautious. After achieving values over the 14000.00 juncture again on late Thursday, the DAX Index has suffered a reversal lower. On Friday, the DAX skid to a mark of nearly 13675.00, but the level then produced upward momentum before the weekend ensued. Upon opening today lower with a gap, the DAX Index has sprung higher and is now traversing values around the 13750.00 level.
Traders may be expecting a rather cautious day because US stock markets are closed for a holiday. American markets, like the German market, have provided a test of highs in recent days, but have also seen pullbacks as equities ebb and flow, but continue to maintain their rather high values. Speculators should not rest too easy today and should maintain risk management strategies which take into account the chance for sudden volatility, but it is likely that the DAX Index may remain rather calm until tomorrow.
Picking and choosing spots to participate in bull markets can be challenging, particularly when traders feel the market has too much enthusiasm. This makes today a rather interesting time to take a position within the DAX Index, as its major counterpart in the US, the Dow Jones 30, takes a holiday. Speculators who believe the DAX sold off too strongly late last week may be looking at technical charts with the notion that resistance may prove vulnerable near term, and now is the time to get into the market as it traverses in a rather quiet manner.
If the DAX Index remains near the 13775.00 level today and is able to sustain its value above current support levels without a serious test of lows, this could prove to be a calling card for traders who are inclined to be buyers. There will be plenty of news the next couple of days internationally which will stir the global markets, including the swearing in of President-elect Joe Biden in the US on Wednesday. This could serve as a bullish catalyst within global equity markets short term.
Technically, the DAX Index remains within eyesight of it highest levels and traders should not be scared off by occasional reversals lower short term. If the DAX Index sustains values around the 13775.00 to 13800.00 today, this may be an indication for speculators that it is a time to take advantage of a quiet marketplace and become a buyer, anticipating higher moves near term.
DAX Index Short-Term Outlook:
- Current Resistance: 13805.000
- Current Support: 13739.000
- High Target: 14080.000
- Low Target: 13840.000