I was recently asked to look at this index and so here are my humble thoughts based on the DAX charts. To me, the DAX is looking rather bullish at the moment on two fronts: It is trying to carve out a monthly-chart bullish triangle breakout and to hold back above the weekly Ichimoku Cloud. Any close above these two regions for August would be rather bullish.
DAX monthly: The DAX made a monthly chart breakout from an ascending triangle and up through the 8,300 resistance level back in September 2013. Price action has been consolidating in another triangle above this 8,300 level since then but now looks to be trying for a breakout from this triangle. Time will tell whether it is successful here for August! If successful I would be looking for a bullish target on the DAX of 13,000 in the first instance as this was the target calculated from the bullish ascending triangle as per breakout theory:
DAX weekly: there has already been a weekly-chart based bullish triangle breakout that evolved with increased momentum:
DAX daily: ditto here too on the daily chart:
DAX weekly Ichimoku Cloud: a key point to note for the DAX though is how it has broken up through the weekly Ichimoku Cloud and is holding above this region for the first time in 12 months, since August 2015. This is a bullish signal as well BUT I do note the bearish divergence with decreasing VOLUME here. I will be watching to see if Volume increases at all as the month closes:
DAX daily Ichimoku Cloud: price is holding above the daily Cloud too but some bearish divergence with VOLUME is noted here too:
Summary: Watch to see whether the DAX makes a successful triangle breakout for the month of August. If so, this would be rather bullish and would also support a hold above the weekly Ichimoku Cloud. I would be looking for a target on the DAX up near 13,000 as this is the target calculated from the ascending triangle breakout.