- The DAX has shown itself to be somewhat negative in the early hours here on Monday.
- At this point in time, we have a situation where the market is probably going to continue to see a potential buy on the dip behavior with the 50 day EMA sitting just below. And of course we are at the dead of summertime.
- So really nobody has anywhere to be volumes are lower.
We had recently seen the markets shoot straight up in the air. So, with that being the case, it's not a huge surprise that market participants may have to grind sideways a bit in order to perhaps sort out what's going on.
Top Regulated Brokers
If We Fall
Ultimately, if we do fall from here, I think not only the 50 day EMA comes into the picture to offer support, but so does the 23,500 euro level. Anything below that level then has me start to question whether or not we are going to get a deeper correction. But I don't really have any interest in trying to get short at this point. If we can turn around and rally and break above the 24,500 euro level, then the market is likely to go looking to the 25,000 euro level.
The 25,000 euro level is an area that a lot of people will watch due to the fact that it is a large round psychologically significant figure that will have a lot of influence and headline power as it were. With this being the case, I think you've got a situation where you probably look at dips as potential buying opportunities. And then if we break down below the lows of the recent consolidation, maybe you sit on your hands for a while and wait to see if the DAX can drop to the 200 day EMA.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.