Dax Forecast Today 26/9: Pulls Back From Resistance (Video)
Date
9/26/2024 2:51:23 PM
(MENAFN- Daily Forex)
In my daily analysis of the global indices around the world that I follow, the DAX stands head and shoulders above a lot of other ones because we are threatening a major breakout. The 19,000 euros level continues to be a massive resistance barrier, and if we can break above there, I think it's very likely that the German index rips to the upside because it's such an obvious barrier to overcome.
The
market breaking above the 19,000 euros level opens up the possibility of 19,500 euros next. And then I do think eventually the 20,000 euros level. Keep in mind that most indices around the world tend to move in lockstep. And what I mean by this is that as we see US indices rally, it does make a certain amount of sense that European ones will as well, especially the DAX, which of course, represents the industrial powerhouse Germany that has a lot of exports.
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The European Central Bank has cut rates recently and that does mean that perhaps the liquidity pushes stocks higher and perhaps could make German exports a little bit more competitive in certain parts of the world. Either way, I do find it interesting that at the 19,000 euro level we continue to pull back and it's probably worth noting that the moving average convergence divergence indicator is showing some divergence. That doesn't necessarily mean that the market has to fall, but a pullback here would make a certain amount of sense only to be met by buyers again.
The 50 day EMA is close to the 18,500 euro level and rising. So anywhere between here and there, I think you have a real shot at buyers coming in and picking up value in the DAX, as it looks like Germany is ready to rip to the upside. Where it ends up, we are not sure yet, but it is likely to be much higher given enough time.
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