The German DAX opened higher in trading session on back of positive data coming out of U.S. and rising speculation that the European Central Bank would introduce quantitative ease like bond buying program to stimulate the eurozone economy.
Traders and investors will look for the European Central Bank meeting on Thursday as many believe that the ECB might introduce easing measures during the meeting. The rising geopolitical risks from Russia and Iraq will also be closely to watch as any further escalations can weigh on the Eurozone economy.
The DAX trading above its 100 day moving average 9,539. The support for the DAX continues to remain near the 9,375 level and only a breach below that level would make traders believe that the current uptrend has reversed. The momentum indicator for DAX are still in bearish territory and showing no signs of moving up into bullish territory which is a huge cause of concern for traders and investors as momentum still is in the hands of the bears.
Traders should go Long on the DAX only if it closes above 9,539 with a strict stop loss at 9,370 and an intermediate target at 9,700.
Traders should go short on the DAX if it closes below 9376 with an intermediate target at 9,180 with a stop loss above 9,540.