- A strong advance to start Monday with the declaration at the weekend of Joe Biden as President-elect.
- This saw global equity markets start the week on a very positive footing, with European averages gapping higher.
- Then, the breaking news from Pfizer that their COVID-19 vaccine trials had been extremely successful with a 90% success rate produced an extremely aggressive rally across global stock markets Monday.
- With key technical levels overcome, the share averages are aiming higher into November.
- Here we analyse the German and pan-European benchmark averages, the DAX and EURO STOXX 50.
DAX day trade outlook: Intermediate-term bull shift
Day trade update and view
An extremely aggressive surge Monday, driven by a bull gap at 12597.5-586, surging through numerous resistances including the topping line from the September peak and the key 13163 level for an intermediate term shift to bullish, and despite a dip back lower to keep the risk higher for Tuesday.
Day trade setup
- We see an upside bias for 12997.5 and 13132; a break here aims for 13290.5 and 13339, maybe the cycle high at 13461.
- But below 12865.5 opens risk down to 12775, 12676 and possibly the support gap at 12597.5-586.
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 3461, 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
EURO STOXX 50 day trade outlook: Intermediate-term bullish shift
Day trade update and view
An extremely aggressive surge higher on Monday, driven by a bull gap at 3229-21, surging through multiple, critical resistances including the key 3301 level for an intermediate term shift to bullish, to just stall and setback from the July peak at 3445, at 3441, to keep the threat to the upside for Tuesday.
Day trade setup
- We see an upside bias for 3382; a break here aims for 3416 and 3441/45, maybe 3467 and 3486.
- But below 3345 opens risk down to 3320, 3281 and possibly 3249.
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 3445, 3467, 3679, 3550-73 and 3868.
- What changes this? Below 3009 shifts the intermediate-term bull trend straight to neutral an intermediate-term bear trend.
