DAX 40, TSX 60 and ASX 200 Forecast – Global Indices Show Choppiness Ahead

DAX Technical Analysis

The German DAX has gapped lower to kick off the trading session on Friday, only to turn around and show signs of life. It looks like we are, in fact, going to try to attack the 25,000 level, an area that I think will continue to be very important.

If we can break above the 25,000 level, then it’s likely that the market could go looking to the 25,500 level. Short-term pullbacks, I think, continue to be buying opportunities, especially with the 50-day EMA offering support as well. I have no interest whatsoever in shorting this market.

TSX 60 Technical Analysis

The TSX 60 in Toronto has taken an absolute beating early during the trading session, as it looks like we are on our way to test the 50-day EMA and the uptrend line. I do think that this is an index that we’ll just have to wait and see, but right now, it looks like mining sector companies are getting hit, which is a huge part of Toronto’s index. So watch this one. It is offering a bit of value, but we need some type of stability and a bounce to show that we are, in fact, going to continue what’s been a very strong uptrend for quite some time.

ASX 200 Technical Analysis

The ASX 200 in Australia is struggling as well, mainly for a lot of the same reasons we see in Toronto, but there is a major resistance barrier just above the $9,000 level that I think the Australians are going to continue to struggle with. The short-term pullback that we see could have the market dropping down to the $8,800 Australian level, where the 50-day EMA resides, or possibly even as low as the 200-day EMA, which is at 8,665.

Ultimately, I do think this is a buy on the dip market, but maybe we’re going to continue to see a lot of volatility around the world, and that’s essentially what all three of these charts have shown me.