Bullish European stocks indices – DAX and EURO STOXX 50 forecast

Intermediate
  • 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 indices, the DAX and the EURO STOXX 50.

DAX day trade outlook: Bull theme intact

Day trade update and view

A setback and firm recovery from just below our 13226 support, from 13220, to then surge to a new recovery high at 13443 near the key 13461 peak, to build on upside pressures from the firm, latter November push higher and the extremely aggressive, earlier November surge through the key 13163 level, to keep the risk higher for Tuesday. 

Day trade setup

  • We see an upside bias through 13443 for key 13461 peak and 13492.5 resistance gap top, even 13555.
  • But below 13226/220 targets 13116 and opens risk down to 13024.5, maybe 12921.

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 12597.5-586 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.

8 Hour DAX Chart

dax chart

EURO STOXX 50 day trade outlook: Sell-off and rebound, aiming higher

Day trade update and view

A strong advance on Monday to push above the recent cycle high at 3495 and also A dip and a rebound Monday from below our 3494/90 support, from 3474, to build on Friday’s push up to a new cycle high above 3529 to 3536, having held above our 3494/90 support area in late November, to sustain upside pressures from the aggressive, earlier November rally through the key 3301 level, to keep the threat to the upside for Tuesday.

Day trade setup

  • We see an upside bias for 3536; a break above targets 3549, maybe towards 3577.
  • But below 3495 targets 3474 and opens risk down to 3458, possibly 3438/36.

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 3229-21 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 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

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