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DAX Index forecast for the week of September 25, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Sep 23, 2017, 07:10 UTC

The German index gapped higher at the open on Monday, but then pulled back to test the €12,500 level. This is an area that should offer support, and it

Dax weekly chart, September 25, 2017

The German index gapped higher at the open on Monday, but then pulled back to test the €12,500 level. This is an area that should offer support, and it has. The resulting weekly candle was a hammer, and that shows that the buyers are still around. I think that a break above the top of the weekly candle should signal that we will continue to go higher. I believe that the market should go looking for the €13,000 level, and I believe the dips are buying opportunities. I have no interest in trying to fight the uptrend, I believe that the DAX will continue to lead the way for the rest of the European Union. The DAX tends to be the blue-chip stock index for the EU, and as the EU economic Outlook has been strengthening, makes sense of the DAX will as well. Pay attention to the EUR/USD pair, as it does have an influence on where this market goes, as it strengthens, it makes exports more expensive coming out of Germany. Alternately though, I think that the €12,000 level has offered a bit of a floor in this market, and should continue to attract buying pressure.

If we do break down below the €12,000 level, the market will more than likely go looking towards the €11,500 after that as it should be recognized as a previous resistance barrier. Either way, I do believe that the buyers will have their way, and once we clear the €13,000 level, it is a move to the €15,000 level that will happen next. I have no interest in shorting this market anytime soon as we have seen such a reliable uptrend over the last 2 years in Germany, and once the elections are out of the way it should give more confidence.

DAX Video 25.9.17

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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