DAX drifts slightly lower on Thursday

The German index drifted a little bit lower during the trading session on Thursday, reaching down towards the €12,500 level. This is an area that was previous resistance, so it makes sense that it would be support. I believe that the market will probably go looking towards the €12,700 level next, as we continue to “stairstep” to the upside. The €12,000 level underneath is massive support, and I believe that the market should continue to have a bullish attitude in general, but I think that you will need to be patient. I think that short-term trading is probably the best way to go going forward, as the market has been so choppy and tight. However, I think the one thing you can take from this chart is that selling isn’t going to be very profitable. Look for signs of support on pullbacks, as they give us an opportunity to take advantage of what has been a reasonable uptrend for several sessions now. I believe that the uptrend is defined by staying above the €11,800 level underneath, which doesn’t look like it’s going to be challenged in the short term.

On the longer-term charts, there is a nice uptrend line slicing through the €11,800 level, so I think that the fact that we have bounced from that area shows that we have saved the uptrend in general, but that doesn’t mean it’s going to be a straight shot higher. I think that these times are quite often very choppy and difficult, so keep in mind that it will take a certain amount of patience to realize the gains from buying.

DAX Video 20.04.18