DAX Index Forecast October 30, 2017, Technical Analysis

The German index gapped higher at the open on Friday, then reaching towards the €13,250 level above. We turned back around to show signs of exhaustion, but part of this was probably due to the end of the week happening more than anything else. I think that pullbacks are nice buying opportunities, and that the €13,000 level underneath will be the “floor for not only short-term traders, but long-term traders. I think that pullbacks continue to be thought of as value, and I will look at them as such. With the EUR/USD pair breaking down significantly, it’s likely that the exports coming out of Germany will continue to cheapen, and that should help bring the value of the DAX higher. I think the people are looking for an opportunity to go long, and then will offer value every time we dip. I think that the market continues to look extraordinarily bullish, and therefore I have no interest in selling.

If we do break down below the €13,000 level, the market probably tests the €12,900 level underneath. If we break down below that level, the market probably accelerates to the downside, but quite frankly I don’t think that’s going to happen. I believe that the market will probably continue to reach towards the €14,000 level above, and then perhaps the €15,000 level as well. Ultimately, I believe that a “buy on the dips” attitude continues going forward, and I look at round numbers as an opportunity to find support, as it is a certain amount of psychological support at them. At this point, if we sell off rather rapidly due to a headline, I’m looking for an excuse to go long. I have no interest in shorting anytime soon, but will be paying attention to the ECB, as they look dovish and willing to support this market.

DAX Video 30.10.17