Dax Forecast Today 21/6: Consolidates At Support (Video)
Date
6/21/2024 4:39:16 AM
(MENAFN- Daily Forex)
The German DAX has rallied pretty significantly during the trading session on Thursday as we continue to see a lot of noisy consolidation. The 18,000 euros level underneath continues to offer a significant amount of support. I'm paying very close attention to the 18,250 euros level above because if we can break above there, then the market can really start to pick up momentum.
At this point in time, I would anticipate that you probably see a little bit of FOMO trading and it is more likely than not that other indices around the world would be taking off to the upside simultaneously.
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We have seen a pretty significant sell off, but recently we've seen a bit of consolidation. So now I'm waiting for that signal to start buying into the DAX because I think it is starting to take off towards the recent highs. That means that we could go to the 18,600 euros level rather quickly, but we also have to keep in mind that a lot of this is going to be influenced by inflationary pressures, but at the same time, the fact that the European Central Bank has cut rates will help Germany as it is a major exporter in the European Union. Pay attention to the euro because if it starts to strengthen too much that could put a little bit of an anchor around the DAX but all things being equal, I believe this is a market that continues to see a lot of value hunters because the DAX is the first place people put money in when they want to invest in the continent.
However, there is a bad scenario that could be realized...
If we were to break down below the 18,000 euro level, then we could start looking to the 17,750 euro level where we had bounced from previously. In general, I do think that the DAX eventually goes looking to the 20,000 euro level, but it may take some time to get there. That might actually be late this year, but nonetheless, it certainly looks like equities continue to just get ran into around the world and Germany won't be any different.
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