DAX approaching decisive resistance level
The DAX has rallied towards the all-important 10,807 resistance level this morning, following a pullback late last week. This resistance level is absolutely critical to confirm the bullish medium-term perspective. As such, the reaction to 10,807 will define the day and could set the index on its path for weeks to come.
A convincing four-hour close above 10,807 would bring about a strong likeliness of substantial gains for the index. Conversely, a bearish intraday reversal pattern could provide us with a significant pullback for the DAX.
Dow uptrend looks set to continue
The Dow Jones has been gaining ground since Wednesday’s lows, with a remarkably consistent trend coming into play. There is reason to believe the US economy will benefit disproportionately from a Trump presidency than the other markets, hence the current outperformance we are seeing.
As such, further gains seem likely, with an hourly close below 18,741 required to negate this current uptrend.