[ad_1]
The attitude of the market is one that seems to be very skittish, so make sure that you keep your position size somewhat reasonable.
The German index initially fell on Tuesday but has recovered a bit later in the day. At this point, the market looks like we are just hanging about and trying to figure out where we are going to go next. Looking at the start does look like we are trying to pressure to the upside, but the 200 Day EMA sits above and is likely to see a lot of interest paid to it. Above there, the €15,000 level is the next major area. I think it’s going to be difficult to get above that, so it’ll be interesting to see whether or not we can do so. If we did, it would obviously be a very bullish situation.
If we were to break down below the bottom of the candlestick for the trading session on Tuesday, it could have the DAX looking to reach the 50 Day EMA below. The market looks as if it is simply chopping around and trying to find its next direction, which can be said for most markets at the moment. The DAX has a major influence on how the rest of the indices and the European Union is concerned, due to the fact that the German economy is by far the largest economy on the continent.
Keep in mind that the DAX is heavily sensitive the global demand, as so many of the major companies that make up the index are international exporters. The DAX is a market that will continue to see a lot of volatility regardless of what happens next, but you should keep in mind that the DAX is not operating in a vacuum, so if you pay close attention to other industries around the world, it could give you a bit of a “heads up” as to where we go next. In turn, then other indices such as the CAC and the MIB in the EU will follow the DAX.
The Euro is cheap, so that does help with exports a bit, but at this point, it is all a matter of time before risk appetite comes into the picture, and it takes so little these days to get the market to sell off. The attitude of the market is one that seems to be very skittish, so make sure that you keep your position size somewhat reasonable.
[ad_2]