- The German DAX has rallied again during the trading session on Monday, gaining over 1% as we are trying to reach the crucial €23,500 level.
- This is an area that has been important multiple times in the past and has been like a brick wall.
- The question now is whether or not we can break above that level and continue going higher?
- I do think that you have to keep in mind that we have really pressure to the market to the upside and exhausted a lot of momentum
That being said, it is most certainly a market that you can have no thoughts of shorting, because it has been so strong for so long. The market plunged quite drastically a few weeks ago, and we have completely wiped out those losses, and now that we are looking at the €23,500 level, the question is whether or not we can finally break out? I think we probably will sooner or later, but I do recognize that a short-term pullback is essentially what most traders would prefer to see, because that way you can find a bit of “value” in the market.
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Germany Leads the Way
Keep in mind that Germany leads the way for the European Union overall, and as long as the DAX does fairly well, you may find other European indices offering more value due to the fact that this one is so overextended. However, this is a market that I do think will possibly break out before the others. Short-term pullbacks offer value, and I think a lot of traders will continue to look for that, but if we were to you get a daily close above the €23,500 level, then it’s very likely that we will try to go even higher. I have no interest in shorting this market, it is far too strong at this point
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