- The German DAX has initially tried to rally during the trading session on Tuesday but gave back gains rather quickly.
- It’s interesting to see how this market is essentially consolidating at the moment, it didn’t is possible that we are forming a bit of a bullish flag.
- This of course is a very bullish sign potentially, but we have a lot of work to do before we break out to the upside and Tuesday is nothing but a sign of that struggle.
Buying on the dips again
I think at this point in time you have to look at the DAX as a market that offers value occasionally, and that value is something that you should take advantage of. It's like any other trend, you want to be involved, but you don't necessarily want to "pay up" for any type of entry. Ultimately, this is a market that I think eventually will open up the possibility of the market going much higher, and the ceiling that is just above, at the crucial €19,000 level. That obviously has a lot of psychology trading attached to it, but at the end of the day, it will only be yet another big number. This means that sooner or later we break through and go on with our lives.
Top Forex Brokers
Given enough time, I think that we not only breakthrough the €19,000 level but I eventually we could go looking to the €20,000 level. In general, this is a market that if you take the “bullish flag” in the so-called “measured move” into account, we could be looking at a move to the €19,800 level at the very least, but keep in mind that the markets typically overrun a measured move given enough time. Because of this, the best thing you can do is to simply use this pattern as a sign that the overall trend probably continues, not necessarily something to use for a very specific target.
Ready to trade the DAX in Forex? We’ve made a list of the best online CFD trading brokers worth trading with.