Investors expect the head of the ECB, Mario Draghi, to announce a program of quantitative easing (QE) to help boost the struggling economy of the euro zone. The investors are still waiting for the QE.
Ahead of the meeting of the European Central Bank the German stock market has generated a new buy signal. The breakout of the symmetrical triangle on daily basis and the breakout above the resistance at 10,000 on all time zones (daily, weekly and monthly basis) were very important for the DAX. The price target is 10,860 (symmetrical triangle). The next target would be the level at 11,000.
It is expected that the ECB could spend over 500 billion euros this year to buy the bonds of governments that use the euro. Less than this value would be a disappointment. The DAX could come under pressure. The former resistance at 10,000/10,113 is the new support und could be tested.