DAX potential breakout immanent

While most other major indices have been busy breaking records, the DAX has not been doing much, instead continuing to consolidate its big gains from the past when it was outshining other markets. But with sentiment remaining positive towards European and global markets, the risks remain skewed to the upside, especially given that the long-term support area of around 23,500 is holding firming. The index needs to clear short-term resistance in the 100-point band between 23,800 to 23,900 to potentially trigger follow-up technical buying above that zone. That's the bullish signal I am certainly waiting for now.

By Fawad Razaqzada, market analyst with FOREX.com