Short-term speculators of the DAX Index have likely experienced rather troubling results the past couple of months if they have not had the ability to carry their trading positions for a durable amount of time. While the DAX Index continues to trend higher and test record levels, reversal lowers are a common element within the equity index too and ove- leveraged traders can be badly affected by these shifts in momentum.
A solid amount of patience and conservative speculative wagers are needed by day traders. The overall trend of the DAX Index remains positive long term and its outlook remains solid, even as economic concerns continue to create worries in Germany regarding slowdowns caused by another potential wave of coronavirus and other complex issues. The major world indices essentially continue to find buyers.
On the 13th of August, the DAX Index did trade above the 16000.00 juncture briefly, but recent trading conditions have proven choppy. Yesterday’s highs of approximately 15930.00 did come within sight of the important psychological mark, but fell short and a reversal lower ensued, taking the index below the 15900.00 mark to end the day. This morning’s trading witnessed a rather strong gap lower and the 15700.00 level was punctured momentarily. However, a reversal higher was then demonstrated and the current vicinity of the DAX Index is near 15810.00.
The optimum trade for short-term speculators with a limited amount of money to wager likely remains the notion of trying to buy the DAX Index on reversals lower while looking for upside movement to be produced. Timing equity speculation remains a difficult endeavor for traders who are not paying a keen amount of attention to technical charts, particularly if they are short-term traders. Trends must be perceived and taken advantage of carefully.
While selling the DAX Index is certainly an option for traders who believe they have enough of a skill set to challenge highs and seek reversals lower, the overall trend of the German index makes this a difficult endeavor. Buying the DAX Index remains a solid opportunity for traders, but they should make sure they are buying either because they believe a recent move lower will reverse upwards, or have enough confidence in a bullish trend to try and ride the momentum. Buying the DAX Index near the 15800.00 to 15775.00 junctures and using cautious stop loss protection could prove to be a worthwhile endeavor short term.
DAX Index Short-Term Outlook:
Current Resistance: 15865.000
Current Support: 15775.000
High Target: 15980.000
Low Target: 15600.000
