The DAX Index appears ready to go into the Christmas holiday with cheer and renewed optimism. News that the UK and EU have potentially reached an agreement on the Brexit trade talks has helped energize markets. Trading sentiment has been steady throughout the week even in the midst of concerns regarding the new variant of coronavirus which has been detected.
Trading on the DAX Index and other major equity indices has appeared fragile at times recently, but importantly, critical support levels were never really broken and higher values have been maintained. Now, as investors take advantage of the last day of trading before Christmas begins tomorrow, there is additional impetus to perhaps participate in equity markets, and it appears that the DAX Index has benefitted from the burst of optimism ignited this morning.
Resistance levels near the 13600.00 may prove to be vulnerable, and if enough investment houses remain active before the DAX Index is closed for the holiday, traders may suspect that another burst of buying can ensue. While economic outlooks remain challenging for Germany, conditions within the global markets continue to hint that investors are not going to stop participating in bullish momentum.
Traders must be careful today and should consider the risks of holding onto positions going into the Christmas holiday. However, speculators who have an optimistic attitude and are looking at technical charts and believe the DAX Index has the capability of going higher short term and early next week, may want to wager with buying positions while they target values and resistance levels achieved last week when the German index challenged high water marks.
Going into the holiday and participating in the markets may make for a nervous weekend if traders hold onto their positions. If a speculator wants to make a quick trade today and attempt to get in and out of a position they cannot be faulted for wanting to participate in the DAX Index when there are signals indicating that bullish momentum may be demonstrated short term. Trading volumes will grow light as investors disappear before the holiday, but it is possible that if the DAX Index sustains its current values financial institutions may be anticipating better days ahead.
DAX Index Short-Term Outlook:
- Current Resistance: 13625.000
- Current Support: 13475.000
- High Target: 13700.000
- Low Target: 13440.000
