The Dax Index has continued to achieve gains in trading early this morning. Traders who are waiting for a selling opportunity via my opinion may have to wait a while. This doesn’t mean the Dax Index cannot lose value, because it certainly will on any given day and can for longer durations, but the general trend in equity markets and their indices has been a strong ride upwards and this is likely not going to change today.
With current resistance around the 12450.00 level, trader may look at this value more as a price target and not a selling opportunity. If the Dax Index breaks the 12450.00 level it may prove to be another sign that you should be buying into the German stock market. No, corporations are not likely to post impressive quarterly earnings the remainder of this year and in fact, Europe and the US will be hard-pressed to prove they are not in a ghastly recession. The reason why indices are going up around the world is because Central Banks including the ECB and US Federal Reserve are making it known that they are ready to give lifelines to the financial markets in a variety of ways.
The fact Central Banks are making money cheap and are supporting the financial system should be looked upon critically. However, having a belief that Central Bank policy is going to be wrong in the long term is not the same as making sure you are on the right side of the trend in the short term. And it could prove profitable to remain a buyer of the Dax Index in the short term. Traders need to carefully consider support levels they can use in consideration with the leverage they are using to speculate.
Support levels for the Dax Index look to be adequate near the 12300.00 level. If a trader used the 12300.00 level as a stop loss, they may have an opportunity to take advantage of the Dax Index as it finds its value while range trading during the day. The Dax Index should be considered as a buy by traders who like speculating on stock indices because global sentiment in the stock markets appears to be positive short term.
DAX Index Short Term Outlook:
Current Resistance: 12450.00
Current Support: 13000.00
High Target: 12500.00
Low Target: 12250.00
