DAX index
The German Dax index remains bid while close to all-time highs. The market forms a triangle as a continuation pattern, and its measured move suggests more upside is in the cards, with a target of minimum 16,200 points.
Today is a bank holiday in the United States, and so the European markets are following the US markets lead from last Friday. The Non-Farm Payrolls report for the month of June turned out to be bullish for stocks, as the S&P500 index closed at the highs, reaching a new all-time high for the seventh consecutive day in a row. Such a winning streak was not seen in the markets since 1997, telling us everything we need to know about the bid behind the international stocks.
In other words, the positive spillovers from the US equity markets should support the Dax index at the highs and help the market put pressure against the 15,800 level.
The Dax index has formed a triangle as a continuation pattern, and the market keeps forming a series of higher lows. Bulls may want to wait for the price to break and close above 15,800 before going long for 16,200. The invalidation for the trade comes only on a move below 15,400.
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