The DAX Index has begun its trading in 2021 with a gap higher followed by a cautious slight trend downwards as traders seemingly await more impetus. Trading volumes may be rather light today as financial institutions return slowly to the investing landscape. The current value of the DAX Index is trading below the 13800.00 level, and this may prove to be attractive to speculators who have the stamina to wait for the next surge of momentum upwards.
The DAX Index continues to trade near record high levels and traders need to expect that volatility will be a constant within these heights. Lighter than normal trading volumes will also add a degree of turbulence short term to equity markets as investors slowly return from their holiday stupors and begin to actively participate.
Future markets in the US are indicating a positive opening for equities and this may become a catalyst for global indices, including the DAX. While traders certainly need to be vigilant about the potential for moves downward, the bullish trend of the stock markets should not be disregarded. Some speculators may have the ability to sell the DAX Index near these higher levels, but they need to be quick and alert to take advantage of downward trends, because support levels may prove to spark reversals higher.
Speculators who want to pursue buying positions can use limit orders near support levels as a launching ground if they remain conservative regarding the DAX Index. Timing momentum is a difficult task in equity markets and short-term traders need to remain steadfast, not over-leverage their positions and use appropriate stop loss ratios. Risk management is important as always, but speculating on further bullish activity in the DAX Index remains attractive technically.
Currently, the DAX Index is trading near lows for the day, but it is doing this after attaining higher ground. If the 13750.00 support level maintains robust value above this level near term, it may be a signal that additional buying may begin to be demonstrated in the German index.
Speculators should be cautious because trading volumes will likely remain light short term, but as financial houses return to the markets in whole they might prove to be buyers and cause the DAX Index to retest high water marks. Remaining a buyer on the DAX Index appears to be a solid speculative wager if support levels are being approached and prove adequate.
DAX Index Short-Term Outlook:
- Current Resistance: 13880.000
- Current Support: 13750.000
- High Target: 13975.000
- Low Target: 13730.000
