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DAX Index Looking to Move Higher

By:
Colin First
Published: May 22, 2018, 06:58 UTC

The index opens for the first time this week after the holiday yesterday

DAX Index Looking to Move Higher

The DAX index is set to open today for the first time this week after the German holiday yesterday and considering the fact that the risk sentiment around the world continues to be high, we should expect a strong opening for the DAX today.

DAX Index Higher

The data from the Eurozone continues to be a bit weak but at the same time, we are seeing that the data has begun to slowly stabilise as well though the economy is still not out of the woods. Also, many of the stock markets around the world are also showing signs of strength and they have been in the green over the past few days and this is likely to help the DAX open the day stronger. But it has to be remembered that the index is in a strong selling region and it is likely to take longer and a stronger move for the index to continue to push higher.

DAX Hourly
DAX Hourly

But that could arrive at anytime as the bulls now seem to have the momentum in the push higher and the fact that they have managed to push through the 13000 region and continued to move higher in due course of time and have also managed to hold the push higher should tell us a lot about how the bulls seem to be quite serious about the move higher. The fundamentals over the last few weeks also seems to have been helping the bulls in their push above the 13000 region and we would not be surprised if it continues for the short term.

Looking ahead to the rest of the day, we expect a strong opening in the index which is likely to be maintained for the day but we might see a bit of a correction towards the end of the day depending on how the US stock indices pan out.

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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