- The DAX is a market that right now at this point, I think we just don’t really have anywhere to be.
- And that does make a lot of sense considering just where we are on the calendar.
- After all, it is August and August tends to be a very difficult market to trade at times, mainly due to the lack of volume.
A lot of these big traders are out there on vacation. They don’t really want to be bothered with a lot of trading and drama and stress. They’re more worried about places like Rhodes and the Hamptons, Mykonos, those types of destinations. So, it does have a major influence on how markets move. And of course, at this point in time, I think what we’re waiting to see also is whether or not we are going to see some type of move as if it were in the markets. And therefore, I believe you have to look at the 24,500 euro level as a major resistance barrier.
On a Move Higher
And if we can break above there, then I think you have a real shot at going to the 25,000 euro level possibly and more likely further than that. That being said, this is a market that also has a major support level in the form of the 23,500 level that I think continues to be very important. And we do have a 50 day EMA between here and there that comes into the picture as well. So really, I don’t think this is a market that you want to get too cute with. You want to wait till you either break out or come back a bit and start buying. I certainly would not be short of the DAX, so it’s a “long only” market for me. It’s just that you might have to be patient.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.