DAX Index Price Forecast August 25, 2017, Technical Analysis

The German index initially tried to rally on Thursday but found enough resistance near the €12,250 level. Ultimately, I believe that the market has a ton of support just below, but if we do break down, I think that the gap from a few sessions ago should also be an area that buyers might be interested in. Longer-term, I think that the market has a bit of a “floor” at the €12,000 level, so if it can hold, the uptrend is still intact. To me, this looks like a market that is waiting on Mario Draghi to speak today, to give us an idea as to where the euro is going to go. With the EUR in focus, that has a direct correlation to German exports. If it rises against the US dollar, that might be slightly negative for the DAX and the short-term, but it also should be rising because of economic strength, which over long-term should have positive headwinds for the German index.

Looking to buy dips

I’m looking to buy dips in this index, just have to let the market tell me where to do so. I think eventually will go looking towards the €12,300 level, and then perhaps even higher than that. Longer-term, I think that the DAX will be a place to buy this fall, as the EU is strengthening while so many other parts of the world are somewhat stagnant. Longer-term, I believe that the €12,500 level will be targeted, and perhaps even higher than that towards the end of fall. This is a market that is probably going to be choppy, but I still think that there is plenty of bullish pressure out there to lift this market and that value hunters will of course be interested as well.

DAX Video 25.8.17