DAX Forecasts: Fall For Help
The German index collapsed significantly during Thursday’s trading session, but then found support just above the 15,000 level, a large, round and psychologically significant number that many people would pay attention to. The 15,000 level of course got a lot of attention and as a result we turned around to show some support. As long as we continue to see the market react to that big number, I think it’s a “buy-on-dips” type of situation.
Also, it makes perfect sense that this continues to be the case, as the 50 day EMA sits right below it, and it certainly looks like it’s trying to hit that area. All other things being equal, the market is likely to continue to see many value hunters jumping into the market, especially as the European economy is expected to recover, and of course, this is the most important factor. in what we see in the DAX, as it is a major top-notch index for the continent.
In addition, the market will also focus on the fact that there is currently a “reopening of trade”, and of course Germany is a major player in this situation. They will continue to supply much of the world with industrial components and, of course, heavy machinery that much of the European Union will need to reopen the economy and make things happen. Otherwise, Germany is arguably the strongest economy in the European Union, so it’s the first place traders get involved when it comes to placing money on the stock exchange on the continent.
If we fall below the 50 day EMA, I think there is massive support at the 14,000 level, and so I think even a breakdown in that area should end up being seen as a value that you can enjoy. of. That being the case, I think this is a “buy on dips” situation as stated before, and there is no way to sell this market. At this point, I believe we are much more likely to see 16,000 than 14,000.