GERMANY DAX #CAC40 #Nasdaq Curiously, reports Germany is on the edge of recession appear to be ignored by the marketplace. In fact, the German index is within sneezing distance of a trigger level which we expect shall provoke a new all time high for the index. Perhaps Germany is suspected of surviving a post-Brexit world…
A ready joke springs to mind. If the renovation company do have insurance, will any unexplained claim be rejected as “An Act of God”? And wasn’t the organist quick off the mark, realising his piano was now a pile of soggy embers and scarpers to Germany, just to get a shot of someone else’ keyboard! Anyone who’s listened to BBC Radio2 “Organist Entertains” will understand a justified loathing for such an instrument.
However, the German market is becoming interesting, visually appearing relieved Brexit has been delayed. The situation now is of movement above 12,120 indicating coming recovery to an initial 12,293 points. If bettered, secondary is a longer term 12,486 points. At this point, we’ll probably commence drooling slightly as the index becomes capable of a third target level.
It’s the third target of 12,677 which is noteworthy, taking the market within sight of an important trigger level. In the event the DAX closes a session above 12,775 points, from our perspective it triggers a longer term rising cycle to 14,153 points. This is perhaps something worthy of consideration for the future.
For the index to get into trouble, it needs below 11,574 points. Weakness such as this will suggest some travel down to an initial 10,929 points with secondary, if broken, at 10,506 points.