The DAX has overcome the multi-year resistance zone between 13600 and 13800 points with a higher-level investment buy signal and is technically on its way to become established at levels well above 15000 points in 2021, per Commerzbank.
Key quotes
“As the DAX has now started moving up with a new higher-level investment buy signal (jump over this staggered resistance zone), the technical bull market cycle continues.”
“We have seen a ‘normal’ bull market trend with high momentum in the DAX – since the Corona bear market movement (sell-off at 8255 points in March 2020). This momentum seems set to weaken, especially in H2 2021.”
“Both the new investment buy signal and the appealing DAX market breadth (several DAX stocks have also seen new investment buy signals) suggest that the former technical interim target for 2021 (entry into the zone from 14500 to 15000 points) is too conservative. The new technical interim target for 2021 should be the zone between 15000 and 15500 points.”
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