The break above 8373 duly arrived, with the index subsequently catapulting to new all-time highs. We are now just 3% away from fulfilling my long-held minimum target of 8972.
Although yesterday's German elections delivered a personal triumph for incumbent chancellor Angela Merkel, it appears her party did, as predicted, fall slightly shy of an absolute majority. Nonetheless, four more years of politics similar to those that have brought Germany full employment and roaring exports should please most market participants. This also clears the deck for the DAX to advance to my defined target band of 8942-9048 over the short term.
I have added just one isolated line to today's chart, measuring an 8.33% rise from the minor low early this month. Positioned at 8770, this line capped the market's strength last Thursday, so we need to watch this level carefully over the coming days. A rise to within the aforementioned target band is still the most likely outcome for the DAX, but it is good practice be aware of any obstacles along the way. As we close in on the target, we must also remember the trade risk will increase.
Recommendation: stay long. Central target 8972 (within a broader band defined as 8942-9048). The stop-loss can be raised from 8000, to trigger on momentum below 8300.