- The German DAX has rallied again during the trading session on Wednesday as we are now up about 1% towards the end of the session.
- Ultimately, the DAX continues to see plenty of buyers. And I think what you have is a situation where traders are willing to buy dips, assuming we get one. The DAX has shot straight up in the air for about four or five sessions now.
- So, I do think we're probably getting close to getting a little bit of a pullback, the RSI, the Relative Strength Index, that is, crossing into the overbought condition right now.
- So, I do think you have a situation where the DAX should offer you some value. The 19,750 euros level is an area that I think probably comes back into the picture for potential support, assuming that we even dropped that far, just as the 20,000 euros level will. There's nothing on this chart that tells me I should be shorting the DAX anytime soon, so I do like the idea of buying dips.
Top Regulated Brokers
You Can’t Short the DAX
I've been long of this market for several days. I'm going to take most of my profit and then add to the position if and when we finally do get that pullback. I do not want to short this market. I will not short this market, especially during December when you get the so-called Santa Claus rally. The Santa Claus rally just simply means that money managers are going to do everything they can to pad their stats at the end of the year so that their clients don't fire them.
They do that by buying the stocks everybody else owns. The DAX has been bullish, so the index of course falls in that purview. Ultimately, this is a situation where the market will continue to see buyers on dips at this point in time.
Ready to trade our daily stock market forex analysis? Here are the best CFD brokers to choose from.