The DAX is trading flatly in today’s afternoon session, with it forfeiting almost all of its gains, after a strong opening this morning. Analysts stated earlier that they believe the index will have a tepid to flat session today because of Thanksgiving. The DAX was in fact inching closer to its all-time high of 10,000, having been in a tremendous uptrend over the past few weeks. Equities in Europe were recently bolstered by comments from a senior official with the ECB, concerning it introducing its own version of Quantitative Easing as early as first quarter next year. Generally a loose monetary policy is considered to be beneficial for equities.
Traders and investors should keenly pay attention to today’s ongoing OPEC meetings in Vienna, as many believe that the oil producing nations would not reduce their production targets. This should subsequently place tremendous downward pressure on crude oil prices, which almost always has a direct correlation with global growth.
When looking at the hourly chart for the DAX, the index is in a strong uptrend and is showing no signs of a reversal at the current juncture. It is trading above its important daily moving average, which is undoubtedly positive. Additionally, its momentum indicators are situated in bullish territory and are showing no indication of retreating. On the other hand, the DAX’s relative strength index is starting to provide a sell signal. Lastly its next level of support can be found near the 9890 level.
Short the DAX at current levels for a short-term target at 9890, with a strict stop-loss above 10075.