Global stock indices retain and reinforce bull theme (DAX forecast)

Intermediate
  • A firm rally by global stock indices on Wednesday, to build on this week’s advance and the late June-early July surge higher.
  • This has sustained the more bullish threat we highlighted last week as stock indices have resolved the June consolidation theme in to a more bullish view.
  • The “risk on” bias has been assisted over the past 48 hours by positive tests from Oxford University and Moderna for a COVID-19 vaccine.
  • Here we look at the German benchmark share average future, our DAX forecast for today and into the second half of July.

DAX day trade outlook: Bull theme

Day trade update and view

A bull gap into Wednesday (12791-782, subsequently closed), to overcome various resistances, including the cycle peak at 12934, up to 12989, to build on Tuesday’s rebound from within our 12520/509 support area, from 12515, to keep the risks to the upside for Thursday.

Day trade setup

  • We see an upside bias for 12938.5 and the new cycle peak at 12989 and then 13000; a break here aims for February swing resistance at 13158.5 and 13250.
  • But below 12758 opens risk down to 12612; a break here targets 12515/509, possibly 12384.5.

DAX intermediate-term outlook

The late May rally above 11417.5 signalled an intermediate-term shift from a bear trend to a broad, neutral range and the acceleration above the 12275.5 swing peak from early March, sets an intermediate-term bull trend.

  • Upside risks: We see an intermediate-term bull trend and risk for 13824 and 15000.
  • What changes this? Below 11589.5 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
6 Hour DAX Chart
6 Hour DAX 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

Comment on this video


  1. Pingback: Bullish stocks (DAX and S&P 500 forecasts) - FxExplained

Your email address will not be published. Required fields are marked *


Latest Related News

Bullish stocks (DAX and S&P 500 forecasts)

Strong gains from global stock averages on Monday, as we highlighted last week.The “risk on” theme has been buoyed by the agreement on the EU Recovery Fund over the past 24 hours.Plus, from hopes from positive trials for both treatments and a vaccine for COVID-19.Here we look at the German and US benchmark share indices, the DAX and S&P 500 forecasts for today, or late… Continued

Solid Euro theme

Euro breaks Up (EURUSD)US Dollar Index holds key support (DXY)Negative appears on Cable (GBPUSD), sending EURGBP higher Continued

Markets hesitant again, sending mixed signals

Macroeconomic/ geopolitical developments Global financial markets started to signal a move to more of a “risk on” theme to start July, after the indecisive phase evident from June.However, an absence of any significant economic data through the past week has seen some markets revert to the ranges seen in June.Markets remain captured by two competing forces; increasingly positive economic data on one side and the… Continued

Next bull leg resuming for share indices (DAX forecast)

A firm rebound for global stock averages Wednesday, after the late June-early July surge higher, to try to reject the corrective setback tone so far this week.This has resumed the more bullish threat we highlighted last week as stock indices have begun to resolve the consolidation theme from earlier in June to a more bullish outlook.The more bullish viewpoint has been driven by better than… Continued

Stocks averages sustain bull threats (S&P 500 forecast)

In Friday’s publication we highlighted the more bullish threat for the German benchmark stock index future, the DAX forecast.The gains so far this week by share indices globally have reinforced the surge higher last Thursday, after the far better than expected US Employment report for June, which produced bullish breakout attempts from multi-week range environments from June.Here we look at the US benchmark stock index… Continued

Forex Brokers in your location


SIGN UP

78,6% of retail investor accounts lose money


SIGN UP

76.4% of retail CFD accounts lose money.


SIGN UP

79% of retail investor accounts lose.


SIGN UP

75% of retail investor accounts lose money.