After testing the low of 15th August 2019, the DAX index started a strong bullish rally. With the break of the critical resistance level at 12461.56, it is safe to assume the medium-term bearish correction in the DAX Index has come to an end and we might experience extended bullish movement. The price is now heading north forming nice higher highs associated with low. This is strong indication bulls are not going to give up soon. On the contrary, decent performance in the Chinese manufacturing industry and the rate cut by the FED officials have bumped up the bulls.
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The DAX Index lost the grip of the bullish momentum after securing a new high at 12989.34 on 28th October 2019. However, the bulls quickly gain control of the market after finding some decent support at 12832.13. Rejection of this major resistance level associated with strong bullish rally creates the unique possibility of testing the high of 21st May 2018. However, such an extensive gain requires support from the fundamental catalyst. So, the investors are advised to stay tuned with the global news. On the contrary, a clear break of the critical support level at 12832.13 might lead this pair towards the next critical support level at 12461.56. This level is going to play a vital role since breaching of this support might create extensive selling pressure.Download our latest quarterly market outlook for our longer-term trade ideas.
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