Dax Index Gaps Higher at the Opening and a Move to 15,000 Is Possible

Dax index returns to the horizontal area that did hold for the first two months of the year and threatens to break higher. If it manages to break and hold above it, it will complete an ascending triangle with a measured move that points to 15,000 and beyond.

The story in financial markets these days is the tightening of financial conditions in the United States and in Europe. Yields are rising, and so they put pressure on the two central banks, the Fed and the ECB. Out of the two, the ECB is the one likely to react first and to ease the monetary policy some more, hurting the euro. However, at the same time, more easing from the ECB is viewed as bullish for equities, hence the move higher in the Dax at the opening of the new month.

Dax Index Technical Analysis

The technical picture emphasizes the ascending triangle pattern mentioned earlier. The market keeps pushing against horizontal resistance, building energy to break higher. For bulls, it is vital to wait and see for the market to break and close on a daily basis above the horizontal level. Only such a breakout validates the ascending triangle. To trade it, bulls need a stop-loss level at 13,600 and a take profit at 15,200.

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Dax Index Price Forecast

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