Stocks averages signal bull trend threat (DAX forecast)

Intermediate
  • A surge higher for global stock averages on Thursday to start to resolve the indecisive tone across indices from the past 2-3 weeks to a more bullish outcome.
  • This was driven by a far better than expected US Employment report for June, with the belief in a strong re-opening of the global economy outweighing the threats from the global rise in new COVID-19 cases (particularly in the southern US states).
  • Here we look at the German benchmark stock index future, our DAX forecast for today and into July.

DAX day trade outlook: Aiming to the topside 

Day trade update and view

An aggressive rally on Thursday above the topping trend line from mid-June and numerous resistance barriers as high as the 12591 swing peak, up to 12644.5, to reject short-term bearish pressures from the indecisive consolidation phase from mid-June, to switch the risks higher for Friday.

Day trade setup

  • We see an upside bias for 12644.5 and 12770.5; a break here aims for 12855, maybe the cycle peak at 12934, even 13000.
  • But below 12423.5 opens risk down to 12303.5 and possibly 12218/210.

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 is the Market Chartist and 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 Mar... Continued

Comment on this video


  1. Pingback: Next bull leg resuming for share indices (DAX forecast) - FxExplained
  2. Pingback: Stocks averages sustain bull threats (S&P 500 forecast) - FxExplained

Your email address will not be published.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


Latest Related News

Bullish into 2021 with blue sweep confirmed

Macroeconomic/ geopolitical developments The Democrats won both seats in the Georgia Senate runoff elections from Wednesday, confirming a “blue sweep”, the Democrats now taking control of both houses of Congress alongside the presidency. Then, Thursday saw unprecedented and shocking events in Washington DC, with Trump supporters storming the Capitol building. The fact that President Trump appeared to incite this activity has seen his social media… Continued

Global Markets Outlook 2021

Initial Parameters: Chart analysis is technical and taken from medium-term historical patternTechnical projections based on a twelve-month time horizonTargets set are based on the most recent, significant technical adjustmentAnalysis is based on Elliot Wave and Fibonacci techniquesTechnical analysis only guides; exogenous factors can shock any marketMarkets, being capricious, forecasts are subject to revisionFundamental analysis can be commissioned on requestEquity sector analysis is thematic United States… Continued

Markets end 2020 in “risk on” mode

Macroeconomic/ geopolitical developments Trump finally signed the $900 billion COVID relief bill, a relief for markets.The EU-UK trade deal finally got done over the holiday season and was implemented at the end of 2020.Europe and the USA are still seeing aggressive increases in the numbers of cases, hospitalisations and deaths from COVID-19, as the new variant first identified in the UK is now being seen… Continued

Bullish European stocks indices – DAX and EURO STOXX 50 forecast

A strong tone, with a dip and a rebound on Monday to end November for European (and global) equity averages.This “risk on” theme remains from vaccine hopes and the Biden bounce.Tuesday has already seen very strong Chinese Manufacturing Purchasing Managers Index (PMI) data, with further global data due today.European averages have managed to hit to new cycle highs.Here we review the German and pan-European benchmark… Continued

European stocks averages hit new cycle highs – DAX and EURO STOXX 50 forecast

A strong rally for European (and global) equity indices to start the week with more positive news from Astra Zeneca/ Oxford University on their COVID-19 vaccine trials.This “risk on” theme was also helped by Janet Yellen’s appointment as Treasury Secretary by US President-elect Joe Biden.Plus, the positive outlook for stock averages has been helped by the start of the US Presidential transition of power.European averages… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.