Yahoo Finance German index shows resiliency in a range bound trading on Monday
The German index initially pulled back towards the €12,750 level during the day on Monday but found enough buyers underneath the turn around and show signs of strength again. I think eventually we could break above the €12,900 level and go towards the €13,000 level after that. A break above that level should continue the overall uptrend, the one thing that I would point out is that we have higher lows over the last several days, so it’s very likely that the market will continue to go higher if you are patient enough.
Ultimately, if we were to break down below the €12,550 level, we would then test the €12,500 level, which of course is psychologically important. If we can break down below there, then the market goes down to the €12,000 level after that. In general, I do believe in the DAX going higher, as it gives us a good place to put money to work in the European Union, especially in reaction to the Italian stating that they plan on staying with the Euro currency, which has settled some concerns in the union itself. The DAX is the first place that money goes looking towards when it comes to investing in the European Union. I think that the German markets will continue to benefit from the idea of the European Union calming down. However, the ECB has a meeting on Wednesday, and any hints of quantitative easing being cut back could be detrimental. On the other hand, traders may look at that as a first signs of normalization, which could be positive. Expect a lot of volatility tomorrow.
DAX Video 12.06.18
This article was originally posted on FX Empire
