One of the strongest rallies in financial markets this year is the one seen on the Dax index. The German index rose to record highs after it broke higher out of an ascending triangle and never looked back ever since.
Germany struggles with the vaccination campaign, but things look rather promising in the meantime. While it increased its border controls during the Easter break, the country is coming out of the pandemic in a better than expected shape. How else should one interpret the rising PMI Services and Manufacturing, that reached into the expansion territory again? That is especially impressive in the manufacturing sector, the backbone of the German economy.
One more thing – the vaccination campaign in Germany is starting to pick, as if we account for population, the recent efforts are close to the ones seen in the United States.
Dax Index Technical Analysis
The Dax index remains bullish while in the rising channel. Aggressive traders may want to go long at the market and add to the position once the market declines into the lower half of the channel. Conservative traders may want to wait for the price to decline into the lower half of the channel before going long with a stop at the previous higher low and targeting a new all-time high.
Dax Index Price Forecast