DAX Index Price Forecast December 4, 2017, Technical Analysis

The German index fell during the trading session on Friday, reaching as low as €12,825, but we bounced rather violently towards the €13,000 level. If we can break above that level again, then I think the market goes to the €13,200 level region. A break above that move should send this market towards much higher levels, perhaps towards the €13,500 level, and then eventually the €15,000 level from a longer-term perspective. I do like the DAX in general, and I think that if we can get a fresh new high, then we can start buying again, and of course a nice buying opportunity on dips, offering an opportunity to build upon a core position.

Ultimately, if we did breakdown below the €12,800 level, I think that the market should send this market down to the €12,500 level where we would see even more support. However, my base case scenario is probably a higher market more than anything else, so given enough time it’s likely that we will find a reason to rally. The DAX is of course the “blue-chip” index for the European Union, and where money goes first when it comes to the EU. I believe that the market should continue to be noisy and volatile, but longer-term I believe that hanging onto a bullish position will eventually pay dividends. The EUR/USD pair has been rising rather rapidly, but it’s likely that the currency headwinds will eventually be ignored as fundamentals are reasonably strong for Germany, and by extension the rest of the European Union. Position sizing will be crucial though.

DAX Video 04.12.17