DAX, TSX and NIKKEI Forecasts – Global Indices Rise Slightly in Continued Constructive Behavior

DAX Technical Analysis

The German DAX rallied pretty significantly early on Wednesday, but it looks like it is shying away from the 24,000-euro level. This is an area that begins a significant amount of resistance all the way to the 200-day EMA.

If we could break above the 200-day EMA, I think that signifies that the DAX is ready to continue to rally. A lot of this is a bit of an overhang from the energy concerns in the European Union, so keep that in mind.

Even if we do fall from here, I think you’re still in the midst of a consolidation and I’m not particularly bearish. I think we are trying to build up enough momentum in the DAX to get some type of bounce from here. I also believe that the market will continue to look to Germany to determine where the rest of the European indices go.

TSX Technical Analysis

In Toronto, we gapped higher to kick off the trading session, but it’s more or less a wait-and-see type of market as we are fairly close to record highs. Gains in the financial sector are providing a bit of a floor as yields soften in Canada, though the index will face some headwinds from a pullback in gold prices.

Toronto is heavily influenced by the commodity markets. The Bank of Canada rate decision later today is not really expected to be much, but there’ll be a statement that, of course, could move markets around.

Nikkei 225 Technical Analysis

The Nikkei in Japan is slightly positive after jumping above the 50-day EMA only to give it back. That being said, the stronger than expected export data and a retreat in oil prices have energized the Japanese dip buyers. We do have a Bank of Japan decision; it’s probably more or less going to be about the statement than anything else. I think we are much like the DAX trying to find some type of bottom here and then momentum to continue to the upside.

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