- The German DAX has initially fallen a little bit during the trading session on Monday, but it does look like it's trying to find some support near the 50 day EMA.
It's crucial to note that there is a lot of political noise in Europe at the moment, as it seems like more right wing voters stepped out and started voting to change the political direction of Europe. And that of course has a lot of traders selling first and asking questions later. Germany definitely was one of the hot spots of right-wing voting and the European Union Parliament elections have really thrown a spanner in the works. Nonetheless, this is a situation where I do think that Germany is an uptrend for a reason, and we should continue to find buyers given enough time.
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In fact, this is almost a mirror image of what we had seen back in March. So, it might just be a simple pullback that you can take advantage of. The 50 day EMA, of course, is going to offer support. But after that, we have 18,250 euros offering support. And then eventually the 18,000 level, which I think at the time being, at least is the short term floor in the market on the upside, the 18,775 euros level looks to be resistant.
And anything above there could bring in the rush to 19,000 euros, eventually opening up the possibility of going as high as 20,000 euros, which is a very realistic target at this point. That doesn't mean that we get there overnight, and it doesn't mean that we get there quickly. But I do think that is most buyers target at this point in time. And clearly this is a market that despite the fact that has drifted a little lower in the last couple of weeks, it's going to be very difficult to short. When you look at the longer-term charts, this should become obvious, and you should keep the upside in mind.
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