Dax Forecast Today 04/07: Rallies Toward Resistance (Chart)

2025-07-04 02:13:55

(MENAFN- Daily Forex)

The German index rally again during the trading session on Thursday as we continue to see buyers coming into pickup this market every time it drops.
It's worth noting that we have recently pulled back toward the 50 Day EMA, which attracts a lot of technical trading, and attract a lot of headlines.
All things being equal, you should also pay close attention to the 24,250 level, which was a swing high and an area that seems to be holding a bit of a ceiling.

Technical Analysis

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I think the technical analysis in this market is relatively easy to sort out, as we have been going sideways for a few months, after shooting straight up in the air. While I think we could eventually break out to the upside, the reality is it could be a little bit noisy for a while, as we just simply grind away to the upside as the DAX has been such a huge leader previously. However, I think we still have a situation where traders will be paying close attention to any pullback as a potential buying opportunity all the way down to at least the 23,000 region.

If we were to break down below the 23,000 region, then we have to have a conversation as to whether or not we are having a deeper correction. However, the US indices really took off during the Thursday session, and that could lead into more buying on Friday. Remember, the United States is on holiday for Friday, so it Germany will probably lead the way as far as what many other indices around the world will be doing.

If we can break above the 24,400 level, then it opens up a huge move higher, which I think ultimately could lead to this market going to be 26,500 level based on the“measured move” of this consolidation. Regardless, this is a market that you can only be long of, not short. Ultimately, I do think we go higher.

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