DAX Forecast Today - 11/07: DAX Rallies Again (Chart)
Date
7/13/2024 11:05:30 AM
(MENAFN- Daily Forex)
I can see that the DAX continues to be very noisy, but it is well supported. It is because of this that I believe we have a situation where the German index may lead the rest of the European Union higher, which is typical in its behavior as Germany is by far the largest Economy on the continent.
We broke to the upside during the early hours on Wednesday, and we are above the 50-Day EMA, and now it looks like we may make another move toward the €18,650 level, an area that previously has been significant resistance. It's also worth noting that there was an uptrend line underneath it we are continuing to respect, so I think at this point in time it's very likely that this remains a“buy on the dips” type of market, although it might be very noisy over the next several sessions.
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Germany Leads the Way
Germany almost always leads the way when it comes to the rest of the European indices, so for example, if the DAX rises, the CAC, MIB, AMX, IBEX 35, and several others will follow right along as Germany is the biggest player on the continent. Furthermore, you need to pay close attention to whether or not the German market is strong to get a gauge on what people think that the overall economy is going to be on the continent. Remember, not only does the European Union have a lot of the same issues as the rest of the world, it also has the added burden of a hot war on the continent.
If we can break above the €18,650 level, then I think you've got a situation where the DAX really starts to take off. At that point, I believe the €19,000 level would be tackled next, and then after that we could go looking to €20,000. A pullback from here Andy break below the €18,000 level would be very negative, but right now it doesn't look like we are ready to do so in the short term.
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