DAX trying to rebound and resume bull forces – DAX forecast

Intermediate
  • Last week we highlighted upside risks for the DAX and despite subsequent erratic activity and setbacks, we maintain this view.
  • The US equity averages remain very strong with global financial markets remaining in “risk on” mode.
  • Although European equity averages are continuing to underperform their US counterparts, we look for them to try to play catchup (despite the US Dollar weakness favouring the US indices).

DAX day trade outlook: Bounce risks

Day trade update and view

A plunge lower Monday, through 12942.5 support, but then holding at 12898.5 (above next 12791.5 support) and bouncing from here overnight/ this morning, holding onto immediate upside pressures from the erratic August recovery activity, to just leave risks higher for Tuesday

Day trade setup

  • We see an upside bias for 13153 and 13245.5; a break here aims for key 13304.5.
  • But below 12898.5 opens risk down to 12791.5, even 12625.5.

DAX intermediate-term outlook

The latter July plunge below 12384.5 signalled an intermediate-term shift to a broader range seen as 11925.5 to 13304.5.

  • Upside risks: Above 13304.5 sets an intermediate-term bull trend to target 13824 and 15000.
  • Downside risks: Below 11925.5 sets an intermediate-term bear trend to target 11589.5, 10856.5 and 10159.

6 Hour DAX Chart

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

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