Intermediate Long with caution
After a very turbulent fortweek with huge swings in DAX30 and cash markets in general, the bigger picture remains still intact.
Last Monday, DAX30 Futures tested its all-time high (15529) but failed with an intermediate high (15472) at just 50 points below. Following this disappointment, market collapsed and lost more than 600 points till it found some bottom in the 14800 area (14806).
This support area around 14800 is now crucial to hold – DAX30 rebounded accordingly and confirmed the trend-channel.
Currently trading at 15270, I expect some further upside to at least 15400 (+100 points) and when momentum is still strong, I would not be surprised if we see even higher levels. Possibly a test of the all-time high and further.
On the longer term, we have a fibo-extension in place formed along last year. Given a measured target of 16805 (+10%, +1500 points). Time cycles suggest that these levels can already be reached mid June 2021!
Conclusion: Risk-takers can buy into weakness, but expect some larger swings (small positions). Others shall remain on sideline till new-highs are in place. New highs could trigger way more upside (+10%!).
Current: GDAXI.INDX15068.7305 (-141.66)
