DAX Index Still Has Room to Push Beyond 14,000

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Written By: Eno Eteng (MSTA)

Feb 03, 2021, 19:16 GMT 19:16

DAX

Summary:

The DAX Index closed about 98 points higher today, giving it a fighting chance of crossing above the 14,000 mark in the short term.

The DAX Index closed the day at 13933.63 for gains of 98.47 points. The DAX index found success from stellar Service PMI numbers for the Eurozone, with the Final Services PMI number coming in at 45.4. This figure beat analysts’ estimates of 45.0, which also served as the previous number.

This news provided bullish sentiment that guided trading on the DAX, enabling it to extend its winning streak to 3 days.

Technical Outlook for DAX Index

Today’s close drags the DAX index towards the all-time high at 14131.52. However, two barriers still exist before price can retest that price level: the highs at 14 January and 21 January. Any new highs and restoration of the uptrend move require clearance above these levels and the existing all-time high. Supporting this move would be a clearance of the channel’s upper border.

If this move fails to materialize, then we could see price petering out into a range, formed by 13792.28 (floor) and 14131.52 (ceiling). There is also the potential of the price falling back into the channel. This move potentially lines up support targets at 13629.61, 13453.14 and 13346.69. Only a breakdown of this wedge allows 13191.15 and 13013.48 to come into the picture.

DAX Index Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.