- The DAX initially fell during the trading session that made up Tuesday as we tested the 18,000 level but have since bounced about 150 euros to the upside.
- With this, I do believe that the DAX continues to see plenty of buyers, and I think ultimately, the DAX will continue to be stronger.
If we break above the 18,400 euros level, then I think you have a lot of people jumping in in order to take advantage of the momentum. At that point in time, I would anticipate the DAX going to the 19,000 euros level over the longer term, but it will take some time to get there. With this, I am bullish.
Top Regulated Brokers
I recognize there's a lot of noise out there. I also recognize that we're in the midst of summer, which is typically one of the more miserable times to trade. The 18,000 level has held true multiple times though. So, I am paying close attention to it and recognize that we are in a scenario where we just don't have to worry too much about anything at this point as long as we can stay above the 18,000 euros level. If we break down below there then the 17,750 euros level becomes important as it is the next major support level and then followed by that we have the 200-day EMA. Keep in mind that Germany leads the rest of the European Union so this is a great indicator how other indices may behave going forward as well.
Look for Value
So, with that being said, I think this is a situation where traders will continue to look at dips as buying opportunities, but I also recognize that we are essentially looking for a reason to go higher and maybe just don't quite have it yet. With this, I think you are looking for signs of value, or even momentum to continue the uptrend that we have been in for some time. The index continues to be one I will not short anytime soon.
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