- An erratic 24-36 hours for financial market assets, with a shift back to a “risk off” mode on Wednesday-Thursday with a leap in the coronavirus cases in the Hubei province, after a change in the counting methodology.
- However, markets quickly shifted back to “risk on” mode, as stocks rebounded, recouping losses.
- In fact, the major US equity averages gained further overnight to new all-time highs, with the number of new cases falling, with the future on the German benchmark index, the DAX also hitting a record level this morning.
DAX Future day trade outlook: Dip and recovery to new record level keeps bull theme intact
A Thursday setback below various supports, but then a firm rebound from just below 13591/90 support, from 13572, to then hit a new record level at 13788.5 overnight just below our flagged 13789 level, to retain bull forces from Wednesday’s surge, PLUS Tuesday’s strong bull gap advance (gap at 13525.5-522.5) through the January then record high (at 13639), keeping the threat higher into Friday.
- We see an upside bias for 13788.5/789; a break above aims for 13833 and maybe towards 13887, even 13933.
- But below 13650/645 aims for the 13572 and maybe targets the bull gap at 13525.5-522.5.
DAX Future intermediate-term outlook
The early February surge above key 13373.5 and the critical bear gap at 13434.5-473 signalled an intermediate-term shift to bullish.
Upside risks: We see a bull trend and risk for 14000.
What changes this? Below 13476.5 sets a neutral range theme and through 12880.5 a bear trend.
4 Hour DAX Future Chart