The German Dax index trades above 15,000 points and marked a new all-time high. The market broke higher out of a bullish flag pattern and remains well bid on every dip. If we look at the flag’s measured move, the Dax should find no resistance until 15,500 or so, and therefore bulls are likely to be in control ahead of the Easter break and after.
The German retail sales disappointed today, coming in at 1.2% on expectations of 2%, but the Dax is influenced by macroeconomics and what is happening with its peers across the Atlantic. Also, the manufacturing PMIs remain elevated in Europe, confirming once again that the manufacturing sector remains resilient.
Dax Index Technical Analysis
From a technical analysis perspective, the Dax looks bullish still. The measured move of a bullish flag equals the length of the flag’s pole projected from the breakout point. It suggests 15,500 or above, but there is one other thing to consider – the time to reach the target.
Combining price and time into a forecast offers more credibility and increases the risk management. Therefore, it is said that a bullish flag’s measured move must reach its target in less than the time it took the pole to for.
Bulls may want to remain on the long side with 15,500 as target and 14,600 as a stop.
Dax Index Price Forecast