- In our report here last week we highlighted upside risks for the European share indices and for a bias for the German DAX to play catch up with its US counterparts.
- The major US equity averages continue to forge to new all-time highs, but today has seen the DAX join the party, with a rally to a new record level.
- This has been assisted by a weakening tone for the Euro, with EURUSD probing lower since last week.
- The short- and intermediate-term threats remain higher for the DAX and other European stock indices.
German DAX Future day trade outlook: New record high above 13596
A selloff and a rebound Tuesday from just above our 13420/415 support area (from 13433.5) and then a surge overnight and this morning to a new record high above 13596, to retain upside forces from last week’s resilient rebound from our support at 13357.5/357 support zone, to keep the bias higher into Wednesday.
- We see an upside bias for 13633 and 13688, maybe towards 13750 and even 13797/800.
- But below 13562 aims for 13490/480 and maybe 13433.5/415.
A January push above 13458.5 has renewed the intermediate-term bull trend.
Upside threat: We see an intermediate-term bull trend to aim for 13596, 13750 and 13955.
What changes this? Below 13079.5 neutralises the intermediate-term bull trend; below 12939 sets an intermediate-term bear trend.
4 Hour German DAX Future Chart