DAX Index rallies on Thursday, breaking resistance

The DAX has rallied significantly over the last couple of sessions, but on Thursday broke above resistance, forming a very bullish sign. The market looks likely to continue to go higher, as the €12,000 level should now offer support again. We had formed a “W pattern” on the chart, which of course is one of the more supportive looking formations you can get. The market bounce from the uptrend line on the daily chart, and I think that shows that the DAX is trying to keep itself afloat.

Now that we have stepped away from the talk of trade wars a bit, I think that global markets will continue to reenter a “risk on” phase, and that should be good for the DAX as it is the first place they will put money to work in the European Union. The €12,300 level should be a target initially, followed by the €12,500 level. I believe that short-term pullbacks will continue to be buying opportunities, unless of course we were to make a fresh, new low, which would smash through not only recent support, but the daily trend line that has been so important for so long. By breaking through all of those, the DAX would certainly crumble at that point. I believe at this point, we are starting to see signs of life again in the stock markets around the world, so I am a buyer of dips when it comes to the DAX, as I believe it will lead the way for several other indices in that region of the world.

DAX Video 30.03.18