DAX index
The Dax index hovers around 14,500, and having a bullish bias as a pennant formation (or an ascending triangle) points to more continuation. Regardless of the pattern, a pennant or an ascending triangle, the measured move points to a move to 15,200 and more.
Optimism prevails in Europe despite the total fiasco of the vaccination campaign. The process is slow in all countries, and now with AstraZeneca’s vaccination being stopped due to health concerns, the slowdown increases dramatically. According to some studies, Spain will vaccinate about 33% fewer people in the week ahead due to the AstraZeneca vaccine being delayed or stopped.
But the stock market trades on future expectations, and investors bet on the end of the pandemic. Encouraging signs from the rest of the world, from countries such as the United States or the United Kingdom, shows that it is possible for the cases to come down with increased vaccination rates and the economies to come closer to pre-pandemic levels. As such, the expectations are that Europe will, eventually reach similar levels, so the stock market indices remain bid.
Bulls may want to stay on the long side and target a move to 15,200 and beyond. If the Dax index falls below 14,200, the bullish scenario is invalidated.
