DAX Forecast August 8, 2017, Technical Analysis

The German index fell initially during the session on Monday, but seems to be finding a bit of support at the €12,250 level. Because of this I believe it’s only a matter of time before we break out to the upside and go looking towards the 12,300 level again. Buying on dips is the best way to trade the DAX, as I believe we have a massive “floor” in the market underneath at the 12,100 level that extends down to the bottom of the uptrend, the €12,000 level. As long as we get the above there, I am a “buy only” trader, but I recognize that the strengthening euro has a been bit of a drag on this market. This of course is due to the idea of German exports becoming more expensive, but at the end of the day the strengthening euro has been it enough fact of the strengthening European Union economy, which should help with earnings regardless.

Buying dips

I am a buyer dips in this market, believe that there is value to be found. I currently have a longer-term target a €13,000, and think that we will get there over the next several months. By the end of the year I fully anticipate to have the €13,000 level in the rearview mirror as we go much higher. Selling is impossible, unless of course we have a break below the €12,000 level, which at that point in time I would become extraordinarily bearish as it would show a significant breakdown in support.

DAX Video 08.8.17