DAX Forecast Today 24/01: DAX Roars Higher (Video)

(MENAFN- Daily Forex)

• The DAX rallied quite significantly during the trading session on Thursday and as we continue to stretch higher, we are now well above the 21,000 euro level and probably overbought at this point.
• So again, I think this is a situation where you need to see a little bit of a pullback in order to find value, but this is a simple continuation of the overall longer term trend, the 21,000 euro level could be an area of support, but even if we break down below there, the 20,500 euro level offer support as well.

Ultimately, I don't really see a scenario in which you should be shorting the DAX, especially considering that the ECB is likely to loosen rates going forward, and that should continue to be the case going forward.

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I don't have any interest in trying to get too cute here and I don't want to chase the DAX . That's the biggest thing because the market is one that you just have to be patient with if you're not already involved in. That being said, if you are long of this market already, then it's just a simple matter of trade management in what is a bit of a runaway move. The DAX should continue to profit from not only the ECB, and its loose monetary policy, but also the fact that it's the first place that money goes to in Europe. So, people looking for safety but on the continent of Europe will go to Germany first. So, with that being said, I remain positive, and I just don't see how this market turns around. Ultimately, this is a market that I think will continue to offer a lot of value if you are patient enough but you also have to be cautious not to get too caught up in the hype.

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