Dax Forecast Today 22/05: Continues To See Buyers (Video)

(MENAFN- Daily Forex)

• The DAX was all over the place during the trading session on Wednesday, but more importantly has broken above the crucial 24,000 euro level.
• The 24,000 euro level of course is a large round psychologically significant figure, so traders will be paying attention to it.
• The DAX in Germany has been leading the way for the rest of Europe, as well as a lot of other indices. And with that being the case, it is worth paying attention to. It's been an absolute juggernaut after we bottomed near 18,800 euro in early April.

It's just been straight up in the air and there's only a handful of negative candlesticks on the daily chart between there and here.

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This is a market that continues to bank on the idea of Germany exiting a recession. And then of course, the fact that the German government is going to deficit spend something that they don't really do, historically speaking. So, it's basically a backdoor way of supporting risk assets. And that's exactly how you have seen this play out.

A breakdown from here could open up the possibility of a move back down to the 23,500 euro level, which is an area that previously was significant resistance. That should be support now. And as a result, I would be interested in some type of bounce from that area as I would the 23,000 euro level. At this point in time though, I do think that eventually we go looking at the 25,000 euro level, but a move like this quite often will have one random day that is very negative. Sometimes too, basically, you have to think about if you had gotten long of the DAX all the way down here, why would you not take profit sooner or later? But I think at this point in time, we still have to remain bullish.

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