I’ve expressed my bullish bias in the stock market with my past few posts. Please read in my last post my observations that’s so interesting to see the eagerness to be bearish and pessimistic and with calling the market top. So I think there is no need to bore you with this again and let’s go straight into the charts.
My main question today is, can DAX30 rip higher into everyone’s face in the next couple of months? Take a look at the weekly chart of DAX.DAX broke the resistance at around 12,000 level early this year. After hitting an all time high this June just below 13,000 level it started to correct towards now the critical support, previous resistance.
DAX had every chance to fall apart on all this negative geo political events with North Korea and negative sentiment, but it didn’t..
An even more important chart to look at is DAX30 priced in USD.
This looks like a proper beast, doesn’t it? It’s much stronger than S&P 500 and it’s even over-performing it. I tweeted on September 1st hinting that I’m expecting this consolidation to resolve higher. Food for thought, do you think this explains the EUR strength to some extent?
So while DAX30 (priced in EUR) stays above 12,000 level there is really hard to be bearish and if this move continues as expected, I would be looking for the target at somewhere around 13,600 level in the next couple of months with a possible extension to around 14,700.