The DAX is flat for the most part during the trading session on Monday as we continue to bounce around the €26,000 level.
DAX
The DAX is flat for the most part during the trading session on Monday as we continue to bounce around the €26,000 level. The Friday session was somewhat positive, snapping a 4-session losing streak, but the week was still down 1.2%. A choppy opening makes sense as we are still trying to figure out where to go next.
Top Regulated Brokers
The main story is the Iranian sanctions that the United States will be unveiling. It's the greatest financial offensive ever marshaled against an adversary, according to the Americans, and secondary sanctions on companies and countries still buying Iranian oil will come back into play.
That being said, it'll be interesting to see how this plays out. Oil has actually dropped a bit early during the session, so that's interesting. Keep in mind that the Germans are going to have to deal with higher energy prices this winter if things don't change.
Technical Outlook
The Iranian sanctions are the story today, but on Tuesday we'll have the Ifo Institute's numbers coming out, and Wednesday we will have a PCE number coming out of Germany as well. So, we do have some things coming out that could move the markets.
Ultimately, this is a market that looks bullish, and it looks like it's just waiting for the next headline to cross the wire before it continues. The 50-day EMA is down at the €25,691 level and rising and could be thought of as technical support right along with that crucial €26,000 level.
I remain bullish, but I also recognize that the headlines could cause a little bit of choppiness this week. This could be an excellent opportunity if the numbers later this week help out, and perhaps even more importantly, the oil situation comes back into stability. At this point, though, there are still a lot of moving pieces to contend with, and with this, I can only follow the overall trend to the upside.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.