DAX, 40, Nikkei 225 and ASX 200 Forecasts – Global Indices Look Hesitant

DAX Technical Analysis

The DAX in Germany is back and forth right around the crucial 24,000-euro level. This is an area that has been both support and resistance recently but is also backed up by the 50 and the 200-day EMA indicators.

So, it is very likely that we will get a little bit of a bounce here. That does not mean that it is a buyable bounce, but it might be a situation where we continue the same consolidation that we had seen between 24,000 and 24,400. A lot of this is going to come down to risk appetite, and I would also say the German bonds, which are yielding 3.06%, almost 3.07%, which is a bit elevated. But it is worth noting that every time we get into this area, bonds do tend to start to get bid again, driving yields down. So, we will see if that remains the pattern. This would be where you would want to see if you are bullish.

Nikkei 225 Technical Analysis

The Nikkei 225 finds itself a little bit positive as rates in Japan are flattening out over the last couple of days. The 58,800-yen level offers support, and it looks like it will continue to do so. So here I think you have got more consolidation with an upward tilt. I do like the Nikkei as long as the Japanese yen remains weak and let’s face it the Japanese yen is pretty weak.

ASX 200 Technical Analysis

The ASX 200 looks like it is going to continue to be weak, and it may drop towards the 8,550 level. The 200-day EMA should offer a bit of resistance even if we do rally. I do not think this is a market that you are looking to jump into and start buying. I think you probably have a little bit more downside. We have seen an acceleration to the downside and even though there was a little bit of a bounce late in the day it is nothing really that impressive. I suspect rallies continue to get sold into when it comes to the ASX 200.