DAX Forecast: Sits Right at the 50-Day EMA

Germany may see energy regulations this winter, and if so, it will completely destroy German industry. The DAX moved back and forth during Thursday’s trading as we continue to look for momentum one way or the other. Remember that the German index still looks a lot to the rest of the world because many of the big companies in the DAX are big exporters, so you have to think about it across the rest of the world. Advertisement Stock Markets Crash Again Buy Dips Now! Energy regulation may happen in Germany this winter and if it does it will completely destroy German industry. Of course, the 50-day EMA is a technical indicator that many pay attention to anyway, so you won’t be surprised to see little selling. Also, even with a very weak euro, it doesn’t matter in the currency market if your exports are cheap if there is no real desire to buy them. Before the noise Remember that Germany is basically the engine of Europe, which means that when other countries in the European Union suffer, the German manufacturing sector suffers too. In addition, we have been in a downtrend for some time, although it has been very uneven. Shares in general are not doing well, including some „safe” indices such as the SandP 500. Finally, the DAX continues to decrease, but if it breaks above the EUR 13,000 level, it is possible that the market could look for the 200 day. EMA, which is exactly at 13,500 EUR in the round. Right now, there still seems to be a lot of noisy activity in the market, but the downward pressure will eventually become overwhelming. The ECB may first blink and ease monetary policy, but honestly, even tighter monetary policy doesn’t seem to be weighing on German stocks at the moment, it’s a simple reality in the geopolitical, macroeconomic and liquidity world. As liquidity dwindles in the financial system, stocks will take quite a hit, which the Federal Reserve plans to do as the world is desperate for dollars. In such an environment, many people do not want to take risks. A breakout rally should continue to be the best way forward.

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