Dax Forecast Today 08/05: Pulls Back Below €23.5K (Chart)

2025-05-08 02:23:55

(MENAFN- Daily Forex)

During the trading session on Wednesday, we have seen the German DAX pull back a bit, which is a repeat of what we had seen during the trading session on Tuesday.
Ultimately, this is a market that looks as if it is trying to figure out what to do with this extreme volatility to the upside, as we have gotten far too ahead of ourselves.
All things being equal, this is a market that I think will end up being very noisy, as we approached the crucial €23,500 level.

Trend Continues Despite Pause

The trend overall continues, despite the fact that we have seen a bit of a pause over the last couple of days. Quite frankly, it would take a lot for me to start selling the DAX , and I do think that most people will look at this through the prism of a market that in short-term pullbacks should offer opportunities for people to take advantage of. After all, it's a very bullish market for multiple reasons, and the most important one most people will be paying attention to is the simple fact that people are bullish, and the momentum continues to be a major driver. As long as that's the case, it's difficult or basically impossible to get short.

All things being equal, I think you will be looking for“buy on the dips” type of opportunities. The 50 Day EMA sits right around the €22,000 level, and of course the €22,500 level was a previous support level as well. I do expect to see market memory coming into the picture sooner, rather than later, but if we do just break out to the upside, I think that we would then go looking to the €25,000 level.

Keep in mind that the Germans are seen better economic numbers now, and that of course helps the entire situation. That being said, you also need to recognize that we are overbought so at the very least I think we need to digest some of these gains after the massive move to the upside.

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