Yesterday saw another record high achieved by the DAX Index as its bullish trend remains strong and clear.
The DAX Index has maintained its strong stance early this morning. After achieving record highs yesterday, a slight reversal downwards has been experienced, but the DAX Index remains near the 15700.000 juncture as traders try to decide how much higher the German equity index can march.
U.S future calls for the major indices across the Atlantic are indicating a cautious opening today. U.S equities have continued to do well also, but today’s upcoming Federal Reserve FOMC Policy Statement is certainly shadowing over global market conditions and likely causing some cautious tendencies.
Technically, the DAX Index did hit the 15800.000 level yesterday, and it is reasonable to suggest that perceived resistance is slightly below this ratio. If the current values of the DAX Index are sustained and the 15700.000 price produces solid trading without any massive profit-taking, traders may be making the logical decision to target the 15775.000 to 15800.000 junctures above as take-profit marks.
Because of the U.S Fed’s policy announcement, which will be delivered after the DAX Index stops trading today, traders should be prepared for the potential of choppy conditions. This may also cause the DAX Index to open with a gap tomorrow morning depending on the interest rate decision from the U.S Federal Reserve and the language regarding their economic outlook. The Fed is not expected to change the U.S interest rate, but they are expected to express concerns regarding price inflation, which is being felt by the public.
The DAX Index has enjoyed a long-term bullish trend higher and has incrementally been able to make new highs on a fairly consistent basis. Traders who continue to pursue upside momentum with a cautious amount of leverage, which allows for buying positions to be held longer, may continue to be the favored speculative wager.
Remaining a buyer of the DAX Index on slight pullbacks lower may continue to produce solid results for bullish speculators. Today and tomorrow can be counted upon to deliver volatility because of the U.S central bank’s policy statement due, but speculators who believe upside values will be attained near term may be making a practical wager and find it worthwhile. Buying the DAX Index near current support levels could prove to be potentially profitable.
DAX Index Short-Term Outlook:
Current Resistance: 15780.000
Current Support: 15650.000
High Target: 15880.000
Low Target: 15545.000