DAX Market Outlook 26 Jan
The DAX30 has been in a strong downtrend since April, 2015 along with US Stocks with a test of the recent 12 month lows earlier this month. It has been rebounding from Wednesday, from the important 9200 level, boosted by the strong rebound in the Oil market and ECB outlook of easing monetary policy. Speculations of no immediate action from the FED in terms of another rate hike and the BOJ’s stimulus plans, may work as further catalyst , along with the possibility of a weakening Euro that would help shore up German exports. It is up by 0.86% so far today.
DAX30 is still in a strong bearish channel on the H4 chart. Currently price has crossed above SMA50 and the stochastics have turned higher indicating strong bullish momentum. Price has breached the high of 22nd January @9838 which may spur the current bullish momentum to breach the significant 10000 level in coming days.
Buy above 9850 with a Stop Loss @9700 and Take Profit @ 10100.