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DAX Index Likely to Push Higher On Positive Intent

By:
Colin First
Published: May 10, 2018, 09:43 UTC

The index is expected to open strong today as it takes a cue from the global markets

DAX Thursday

The DAX index continues to trade in a buoyant manner and by the look of things, it seems as though the the index would only move higher in the coming days as well. The stock markets in the US have closed on a positive note on the previous day which has led the Asian markets to also move higher and we believe that the positivity of all that will rub off on the DAX when it opens today.

DAX Likely To Push Through 13000

The DAX was choppy yesterday for a multitude of reasons with the cancellation of the deal between the US and Iran dominating the headlines in the market. This caused the oil prices to shoot higher in due course of time and the market also faced some uncertain times during this last 24 hours as the investors were worried that the problem could escalate. But so far, none of that sort has happened and the markets were able to heave a sigh of relief. Also, the DAX was close to a region of resistance which is likely to witness selling.

DAX Hourly
DAX Hourly

So, there were some traders who were intent on taking profits out of the market and wait to see what direction the market would take in due course of time as the index approached the 13000 region and that has also led to some delay in the index moving up during this time. A combination of these factors were at work yesterday but with the global indexes moving up late in the night and today morning, we expect the DAX to also respond in a similar manner today and move higher.

The break of the 13000 region would be the key as this is likely to lead to a breakout and a run higher and this should add to the momentum for the bulls. There is not much by way of economic data in the Eurozone for today as all the focus is likely to be on the UK and the pound with the BOE rate announcement

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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