European share indices stay strong (DAX and EURO STOXX 50 forecast)

Intermediate
  • A solid rally for European (and global) chare markets to begin the week with news from Moderna that their COVID-19 vaccine trials had been extremely successful with a 95% success rate
  • This on the back of similar results last week from Pfizer for their vaccine
  • European stock indices were higher Monday with this news, though not as aggressively up as last week
  • Surging COVID-19 cases and hospitalisations in the US, however, remain a big concern
  • But with key technical resistance levels overcome last week, European share averages are aiming higher into the second half of November
  • Here we look at the German and Europe wide benchmark indices, the DAX and EURO STOXX 50

DAX day trade outlook: Upside threats resuming

Day trade update and view

A firm rally Monday above 13166 and 13239.5 resistances, to stall just below a notable barrier at 13290.5, at 13275, to build on Friday’s dip and rebound from above our 12865.5 support level, from 12921, to resume bull pressures from last week’s extremely aggressive surge through the key 13163 level, to keep the risk higher for Tuesday.

Day trade setup

  • We see an upside bias for 13183/184 and 13270/290.5; a break here aims for 13339, maybe the key 13461 peak and 13492.5 gap barrier.
  • But below 13066/035 opens risk down to 12921, maybe 12865.5.

DAX intermediate-term outlook

The push above 13163 signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 13461, 13421-492.5, 13824 and maybe 15000.
  • What changes this? Below 11772.5 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
8 Hour DAX Chart
8 Hour DAX Chart

EURO STOXX 50 day trade outlook: Bounce, looking for more

Day trade update and view

A strong advance Monday above 3471/72 and 3486 resistances close to 3590, up to 3495, to build on Friday’s rebound exactly from our 3392 support level, to resume upside forces from last week’s firm advance through a key level from March at 3467 and prior to that the key 3301 level, to keep the threat to the upside for Tuesday.

Day trade setup

  • We see an upside bias through 3477; a break here aims for 3495/3500, maybe 3527.
  • But below 3436 opens risk down to 3392 and possibly 3345.

EURO STOXX 50 intermediate-term outlook

The push above 3301 signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 3679, 3550-73 and 3868.
  • What changes this? Below 3009 shifts the intermediate-term bull trend straight to neutral an intermediate-term bear trend.
8 Hour EURO STOXX 50 Chart
8 Hour EURO STOXX 50 Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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