As long as DAX remains above June's highs of 12,950 EUR, the short-term outlook seems bullish. However, bulls now need to push the index above the critical resistance zone between 13,200 - 13,400 EUR.
If they are successful, the medium and long-term outlook would probably change to bullish as well. The next target would be at pre-corona highs near 13,800 EUR.
A bit more stimulus by the Fed or the ECB and the index should shoot through these resistances without any problems, despite rising COVID cases globally.
Alternatively, a failure to stay above 13,000 and 12,950 EUR could lead to a smaller decline toward 12,800 EUR. For now, the trend seems bullish.
