DAX 40, TSX 60 and ASX 200 Forecast – Global Indices Continues to Show Divergences

DAX Index Technical Analysis

The German DAX has fallen a bit during the trading session here on Thursday as we are well below the 50-day EMA and the 24,500€ level. I would also point out that the 24,300€ level seems to be offering a bit of support.

What I am hoping for here is a bit of a bounce. Longer term I still believe in the DAX going higher, but right now there are a lot of concerns out there about multinationals and trade tariffs.

As long as that is the case, you could see a little bit of hesitation here, but longer-term traders certainly seem to be attracted to this market. It is a little bit of wait and see. If we can break above the highs of the day on Thursday, that would be a good sign, maybe that we will go back to the 25,000€ level. If we break the recent swing low at 24,250€, I walk away and I let the DAX do its thing.

TSX Composite Technical Analysis

The TSX 60 in Toronto continues to look strong over the last couple of days as commodities continue to push this market higher. Keep in mind that the TSX is chock full of mining corporations, companies like that, so it is a good way to play the commodities.

Sitting here at the 32,550 area, it looks as if we are going to try to take out that nasty candlestick from Monday that was a reaction to the commodities sell-off last Friday, and of course, going into the weekend. All things being equal, though, I think the 33,500 level is still a target, and I do believe that Toronto gets there eventually.

ASX 200 Technical Analysis

The ASX 200 in Australia is a little bit bearish, but I think this is a little bit different story than just simply commodities because the Reserve Bank of Australia is likely to raise rates again. If that is going to be the case, it puts a little bit of hesitation into this index.

We initially pulled back to the 38.2% Fibonacci retracement level back in the middle of November. Now it looks like we are just grinding higher. I think that the keyword here is grinding. Watch these 8,800 levels as potential support. If we bounce from there, it might be worth a short-term trade towards the 9,000 level.

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