- European equity averages have surged higher this week having already secured from basing patterns into the end of August.
- The announcement of the restart of US-Sino trade negotiations in October has added to a positive tone from the easing of a no deal Brexit threat and also from a reduction of tensions in Hong Kong.
- Here we spotlight the German benchmark stock index, the DAX.
DAX bull extension
A firm rally Wednesday through 11992 and 12044.5 resistances and then higher again overnight through the notable 12099.5 barrier, to build on Tuesday’s dip and a rebound from above our 11837.5/803 supports, sustaining bull forces from the late August advance above key 11847.5 (for an intermediate-term bullish shift), to keep risks higher Thursday.
The late August move up through 11847.5 secured an intermediate-term base and an intermediate-term bullish shift.
- We see an upside bias for 12163.5 and 12174; break here aims for key 12260 and 12325, maybe 12385.
- But below 12105/100 opens risk down to 12053.5 and maybe 11993.5.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 12260.
- Higher targets would be 12466 and 12650.
- What Changes This? Below 11565.5 shifts the intermediate-term outlook back to neutral; through 11480 is needed for an intermediate-term bear theme.
4 Hour DAX Future Chart