DAX is consolidating under new record high, further advance likely
The Dax is trading within narrow consolidation under new all-time high on Monday, following 1.5% rally last Friday (the biggest one day gains since March 8).
Global stocks remain underpinned by expectations that major world central banks will maintain ultra-loose monetary policies for extended period of time, while encouraging signs that global economic recovery is picking up, boost risk sentiment.
Strong rally from March 2020 low (7940) is currently running on the third wave of five-wave cycle and eye target at 16799 (Fibo 100% expansion).
Friday’s rally cracked target at 15512 (Fibo 200% expansion of the upleg from 15159 (Apr 8 low), break of which would expose barriers at 15580 (Fibo 238.2%); 15622 (Fibo 261.8% expansion) and 15689 (Fibo 300% expansion).
Overbought daily studies warn of consolidation, with corrective dips expected to find footstep above 15340 (daily Tenkan-sen / former high of Apr 6).
Res: 15520; 15580; 15622; 15689
Sup: 15470; 15431; 15340; 15295