Is the DAX going to new record highs?
The German stock index DAX has been sitting tightly on its 20 moving average in recent days. Even the news about the -5% GDP data for 2020 last week did not send the benchmark to new lows.
That indicates, that investors are focusing on the European and the American stimulus packages, which will hopefully revive economies. The latest bigger drop on 21 December was also halted by the 50 moving average, since then we had a new record high at 14.122 (A). If the index breaks above this level, there will be an uncharted territory and price can rise without any resistance. The RSI is around its 60 level, so there is still room for the rising.
On the other hand, if it sank below its previous relative low (B), it could be tested again by the 50 EMA. Further weakness could send the price to the support level around the 13.050 area (C).