European stocks surge, playing catch up with the US (DAX forecast)

  • In our article here on Tuesday we highlighted that European equity indices are now helping US share averages in their push higher, with European stock markets aggressively resuming upside pressures.
  • The bull theme for US stock indices continues, with the S&P 500 future now poised to test its all-time high from February 2020. at 3397.5.
  • However, here we focus on the German benchmark, the DAX.

DAX day trade outlook: Upside risk growing for key 13304.5

Day trade update and view

A Wednesday advance above 13043.5 to 13098, to build on Tuesday’s surge higher above resistances at 12807, 12872.5 and 12973 to 13043.5, sustaining the early August rebound from 12199.5, to leave risks higher for Thursday.

Day trade setup

  • We see an upside bias for 13098 and 13208; a break here aims for the key cycle high at 13304.5 and maybe the key February bear gap at 13421-492.5.
  • But below 12803.5 quickly aims for 12766 and opens risk down to 12593.5 and possibly 12508.5.

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

Comment on this video

  1. Pingback: European stocks poised to follow the US higher (DAX forecast)

Your email address will not be published.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

Latest Related News

DAX bear threat – DAX forecast

A plunge in global equity markets to start this week after a weakened close last week has seen stock indices wipe out important support levels already.European equity averages are starting to play catch up with their US counterparts, having held in previously with Euro (EURUSD) weakness.Here we look at the German benchmark average, the DAX, which is setting up for a far more negative signal.… Continued

DAX trying to rebound and resume bull forces – DAX forecast

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… Continued

European share indices following the US higher – DAX forecast

Yesterday we highlighted the S&P 500 future hitting a new record high and through the psychological/option level at 3400.Despite European equity averages underperforming their US counterparts in August, they have tried to play catchup in the past week.The more positive tone for the European indices has been assisted by the fact that the latest “risk on” move higher in global stock indices has NOT been… Continued

European stocks poised to follow the US higher (DAX forecast)

In our article here last week we tried to spotlight European stock averages trying to play catch up won the upside with their US counterpart.The S&P 500 cash index made a new record high this week (with the future poised for a similar signal going into today), whilst the Nasdaq 100 continues its march to record levels.Although European equity indices have fallen slightly behind, they… Continued

S&P 500 poised for a more bullish signal

Macroeconomic/ geopolitical developments The “risk on” theme continues in August, albeit rather unenthusiastic.This “risk on” leg has been reinforced this week with wider, global financial markets indicating a more positive economic outlook, as we review in the ‘global financial market developments’ section below. The macroeconomic was broadly positive again, though US Retails Sales slightly disappointed on Friday.There have been some pockets of improvements for COVID-19… Continued

Forex Brokers in your location


78,6% of retail investor accounts lose money


74,9% of retail investor accounts lose.


75% of retail investor accounts lose money.


76.4% of retail CFD accounts lose money.