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.
|Short Term||Long Term||Net % Gains|
|271 BPS||0||670 BPS||0||
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