Dax Index Forecast: April 2021

Robert Petrucci

The DAX Index is trading at record highs and the 15000.00 mark is within sight for speculators with bullish sentiment.

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The DAX Index is traversing within record territory and speculative fever for traders is being put to the test. March produced a constant rise in value on the DAX Index and on the 8th of March when the equity index moved from nearly 14130.00 to the 14400.00 level it has essentially not looked backwards. Support levels since this swift move higher in early March have incrementally risen. Speculators looking to sell the DAX Index at these heights need to use stop losses and have courage to fight the trend.

The current price of nearly 14910.00 on the DAX Index has the German index resting comfortably near the 15000.00 mark. While some traders may suggest that the notion of this number is unimportant psychologically, trading history presents evidence that when important ratios are challenged that speculative fever does tend to become more exuberant. This doesn’t mean there will be no reversals downward, it does suggests however if the 15000.00 juncture comes into sight that volatility could increase as the number gets tested.

The question for traders is just high can the DAX Index go? Picking a resistance level when an equity index is traversing record highs is not easy. However, the 15000.00 mark is certainly a recipe as a place to start from a technical perspective due to the implication of its not so subtle value. Global equity indices are currently within the grip of bullish sentiment and this has been spurred on by the notion that central banks will continue to practice extremely low interest rate policies. It doesn’t mean that indices are guaranteed to only go up however.

It took a significant amount of time for the DAX Index to break towards new highs. From early January until early March the DAX Index essentially traded within a rather tight value range from 13600.00 to 14100.00 with some outliers taking place time to time. This underscores the notion that timing the market is difficult at best.

Traders should rely on technical charts and behavioral sentiment as a guide. The prevailing sentiment within the global markets is an optimistic tone. Yes concerns continue to be heard, but speculators who are looking for the opportunity to wager on the DAX Index should continue to pursue upward momentum via the bullish trend which continues to be demonstrated. A solid dose of risk management is needed to protect against the ability of the index to produce sudden spikes downward, but the opportunity also exist to buy the DAX Index when it comes within sight of short term support levels.

The month of March produced record setting valuations for the DAX Index. Current market sentiment may continue to produce new highs in the weeks ahead for equity indices. Technically support levels can be used as buying opportunities in order to seek reversals higher. Cautious traders should use conservative amounts of leverage when pursuing trading positions within the DAX Index, but the notion that the equity index has further room to traverse higher in the month of April may prove to be a worthwhile speculative wager.

DAX Index Outlook for April:

Speculative price range for DAX Index 14300.00 to is 15300.00.

Support near 14660.00 could be viewed as important if it is approached with downward pressure. If it proves vulnerable early March values near 14300.00 could become a target if nervous sentiment builds.

Resistance levels at record values is based only on instinct and potential sentiment, the 15000.00 mark is important psychologically and if punctured higher could cause speculative fever to rise and target marks higher in a swift fashion.

Dax

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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