DAX at pre-covid highs

16/12/2020

German DAX has been performing quite well this week, and it is totally ignoring a hard lockdown in the country, starting today. The index is up more than 3% on the week, rising each day so far.

On Wednesday, it was seen 1% stronger, trading at around 13,560 EUR, which are levels last seen in February, just before the massive COVID decline.

The key support now seems to be at 13,460 EUR, where previous cycle highs are located. As long as the index remains above this level, the short, medium, and long-term outlook seem bullish. 

However, if DAX drops back below this support, it might be a bull trap, usually a bearish reversal pattern. In that case, the next support appears to be near 13,200 EUR.

Alternatively, if the index continues to rally, the next target should be at the all-time highs reached in February at around 13,800 EUR.
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