Analysis

Premium analysis by our dedicated team
DAX
Dec 7, 2020, 1:29 PM GMT
#Indices

Can the Bullish Rally of the German DAX Index Persist?

The price action of the DAX is consolidating just below the pre-crash level at 13450.000 for the third time since the index started recovering in early-April. A potential bearish rebound from this level could entail the termination of the recent bullish rally. In contrast, another breakout would signify the continuation of the rally towards the all-time high near 13900.000. That is why the next step of the DAX will be of such great importance for its future development.

On the one hand, the stabilisation of the energy market complemented by rising oil prices, and the persisting vaccine optimism, would likely continue supporting the recuperation of the German index as global stocks advance. On the other hand, the rattled consumer confidence in the country already stymied the pace of DAX' bullish run, and traders may need further confirmation regarding the strength of the index.

ECB's highly anticipated monetary policy meeting on Thursday is bound to affect the European equity market, as the Governing Council may decide to recalibrate its Asset Purchase Facility programs. The outcome of the meeting could therefore serve as a catalyst for DAX' next price swing.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
271 BPS 0 670 BPS 0
7.19%
Short Term
+ -
271 BPS 0
Long Term
+ -
670 BPS 0
Net % Gains
7.19%

Disclaimer: Your capital is at risk! Trading and investing on the financial markets carries a significant risk of loss. Each material, shown on this website, is provided for educational purposes only. A perfect, 100% accurate method of analysis does not exist. If you make a decision to trade or invest, based on the information from this website, you will be doing it at your own risk. Under no circumstances is Trendsharks responsible for any capital losses or damages you might suffer, while using the company’s products and services. For more information read our Terms & Conditions and Risk Disclaimer.