The DAX Index, like its major counterparts globally, continues to trade within the upper echelons of its value, but experienced a rather cautious trend line as investors appear to wait for the next dose of major impetus. The word ‘dose’ is not used accidently within this writing. Unfortunately, part of the shadow hovering above global equity indices is the constant developing news regarding coronavirus, and now the rate of vaccinations is taking center stage and possibly having an effect on trading sentiment as nations struggle to get their logistics in order to safeguard their citizens.
However, the DAX Index, like the Dow Jones 30, remains highly valued. Impressively, even as some doubts are heard about current values within the equity markets, the major indices have not seen violent sell-offs, which seems to indicate that profit-taking is being frowned upon because financial houses may still believe that higher ground can be achieved.
The DAX Index is trading below the 13900.00 level, which has become an important hovering ground. If the DAX can break above this level and sustain its value, this will indicate that further bullish sentiment is likely to develop. Unfortunately, the past couple of weeks have produced choppy conditions and speculators who are pursuing bullish trends have had to be patient.
Certainly, one tactic as a buyer of the DAX Index remains the notion of buying on dips and using support levels below as stop loss ratios. The current value of the DAX is testing morning lows and the 13850.00 mark should be watched; if it falters, the 13822.00 level will become an important support juncture. US future markets are signaling a potentially choppy day of trading for the major Wall Street indices. While the current prices are showing slight gains, the levels are not strong, nor convincing. Wall Street did produce a negative day before going into the weekend.
Short term, the DAX Index looks cautious and traders may want to actually pursue some lower values with quick-hitting selling positions with support as targets. However, traders with the ability to practice some patience and a determination to pursue the long-term bullish trend and believe it will reignite cannot be faulted. Buying the DAX Index on moves lower may continue to be a way to take advantage of the market as speculators await upward momentum to get stronger.
DAX Index Short-Term Outlook:
- Current Resistance: 13913.000
- Current Support: 13822.000
- High Target: 13995.000
- Low Target: 13782.000
