DAX rallies on Thursday, showing signs of strength again
The €12,000 level has been broken over the last couple of days, and it now looks as if we are ready to continue the next move higher. I think that the €12,500 level above will be targeted, and pullbacks of this point will probably find plenty of support at the €12,000 level as it should retain some market memory and of course psychological importance. This is a market that I think continues to offer opportunities on these pullbacks, as it offers value. I think that the market should continue to be very noisy, but at the end of the session today, we should have some answers as far as risk appetite. If the trade war talks can continue to be a bit cold, we could see a bit of a bullish move in stock markets all around, and the “risk on” attitude could send the DAX towards much higher levels as it is the first place that traders will put money in to take advantage of the European Union.
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There’s an uptrend line recently that has offered a lot of support, and I think it should continue to be the “floor” of the market going forward. I like the idea of using this market trend line to keep the DAX from falling any amount of time. I think that the German index is going to continue to lead the way for other indices around the world, as it is a harbinger of one of the world’s largest economies. If we did breakdown below the uptrend line, we would probably drift to the €11,500 level.