Clearly Angela Merkel has ramped up her partying with the continued bounce in the German DAX. She was drinking one mug when I talked about the possibility of a retest of the breakdown levels here last week. And as the DAX passed through the breakdown zone she moved to the double-fisted stance above.
But I'm sorry to report that Merkel -- if she's still standing after all those beers -- that the DAX is not out of the woods. In fact, if you can see the chart above mein Chancellor, there are two things to watch for before you can loosen the lederhosen and burst into song. First is that pesky purple line, the 20-day SMA. A close above that -- and even better, above 9200 -- will be a victory indeed. Second, look for the RSI to climb and stay above the mid line and preferably over 60. Until these points are crossed, perhaps Ms. Merkel should put down the beer and sober up.
Remember, the down side remains a big risk.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.