d a relatively weak session on Friday on the back of a spectacular upmove it had witnessed over the week. The waning geopolitical tensions and the speculation about introduction of more stimulus by the European Central Banks had led the German Index higher post hitting that intraday low of 8898 a week ago. The DAX was able to close above the resistance zone posed by the 20 day exponential moving average which stands at 9269. The next level of resistance for the index would come around 9460 which is also the downward sloping trend line from the intermediate high points. Traders though are still closely watching the situation in Ukraine as news reports of further escalation would be used as a trigger to sell into the index and take the German index lower. The stronger dollar has also been seen as a risk as investors believe it could hurt the economic growth story and might lead to economic meltdown with regards to the equity markets.
On the daily charts the DAX seems to be in a strong uptrend backed by good volumes which is being seen as a huge positive by traders. Though, many still believe that only on closing above key resistance levels at 9460 and then 9578 would be a clear sign of momentum clearly in the hands of the bulls in the medium term. The momentum indicator for the DAX has given a buy signal which is indicative of the strong up move witnessed by the index. Immediate support comes in at 9260 for the index
Long DAX if it closes above 9460 with an immediate target of 9600 with a strict stop loss below 9269
Short DAX if it closes below 9260 with an immediate target at 9000 with a strict stop loss above 9420.