DAX continues in its bullish tracks


As we noted during the previous week, the German index DAX was consolidating in a narrow range and it looked like a bullish breakout was imminent. This really occurred and the DAX index soared another 500 points after the breakout.

On Thursday, it was another 1.5% stronger, hovering at around 10,540 EUR during the Frankfurt session. 

The next resistance is at this week's highs of 10,570 EUR and it seems this area will not be any trouble at all for bulls. The next target will then at 10,890 EUR, where the 50% level of Fibonacci retracement from the recent large drop is located. This will be the key area and if the index jumps above this resistance, the medium-term would switch to bullish again, with the latest large drop quickly forgotten.

The critical support seems to be at around 10,000 EUR and as long as the index remains above this level, the short-term outlook seems bullish and dips could be bought, despite the very bad fundamentals. 

Central banks are printing money at a record pace and that is all that matters. 
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