(MENAFN- Daily Forex)

• The DAX moved slightly higher into the 50-day EMA, a key technical level that traders are watching closely.
• The index remains locked in a range between €23,000 and €24,500, with pullbacks still viewed as potential buying opportunities amid broader European uncertainty.

The German index rallied slightly during the trading session here on Thursday to reach the crucial 50-day EMA. The 50-day EMA, of course, is a major indicator that a lot of people pay close attention to. If we can break above the 50-day EMA, then the market could go looking to the 24,500-euro level. That being said, short-term pullbacks, I do think, continue to be buying up opportunities for those who are willing to take advantage of a little bit of volatility.

The market has been in consolidation since the beginning of May, with 23,000 euros at the bottom offering massive support along with the 200-day EMA, which is right there. And then the 24,500 euro level above offering a significant resistance barrier.

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If we can break above that level, then we really can take off. And I think the measured move, 1,500 euros, opens up the possibility of 26,000 euros. All things being equal, though, this time of year is a little bit odd in the stock markets. And of course, we have a lot of questions about trade tariffs, trade negotiations, global strength of economic movement. And then of course, you have to keep in mind that Germany is the gateway to the rest of the European Union. So this is an indictment on Europe, but it also might be the gateway to other places like Amsterdam, Milan, etc. So with that, you need to look at Europe as a whole.

If Europe really starts to take off, then Germany may underperform while some of the smaller indices rally. You will see it in Germany first when money comes flooding into the EU, and then it's a good heads up for the rest of the indices. Right now, it looks like we're just sideways. Taking advantage of the range is exactly what I plan on doing going forward.

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