The DAX index continues to trade flat in the early afternoon session, but still maintains a positive bias. It is however still building on yesterday’s gains, as it still is leaning towards the bullish side. The resistance for the DAX on the upside comes near the 9592 level while support continues to be found at the 9143 zone.
Many analysts firmly believe that if the European Central Bank is to go ahead with its version of a Quantitative Easing program, it should greatly beneficial for European equities in the near-term. Furthermore, recent economic data from China concerning its export growth caused a boost in the Asian markets, and is now seemingly rubbing off onto the European Indices.
Investors should closely pay attention to all the economic reports emanating from China in the next couple of days to understand the economic condition in the world’s second largest economy, which additionally happens to be Germany’s biggest trading partner. Furthermore, volumes overall are expected to be lower on due to Veterans Day in the U.S.
When looking at the hourly chart, the index is currently climbing above its 100-day moving average. Meanwhile, the momentum indicator for the DAX is trending higher, heavily highlighting a shift towards the buy side. Lastly, the relative strength index continues to trade in bullish territory, which of course is positive for the DAX in the short-term.
Long the DAX at current levels for a near term target at 9592, with a stop loss below 9280.
Short the DAX if it moves below 9267 for an intermediate target at 9143, with a stop loss above 9300.