The German index sold off rather drastically during the trading session on Thursday, slicing through the important €13,150 level, and crashing into the €13,000 level. We have found a bit of support in that area, so it’s likely that we could get a bit of a bounce from there, but I also recognize that if we break down below the €12,950 level, it’s likely that we will continue to fall significantly, perhaps to the €12,800 level.
If we can break above the €13,150 level, it’s likely that the market will continue to go higher, perhaps reaching towards the €13,300 level. Ultimately, this is a market that should offer value eventually, but right now I would step away and look for an opportunity to find some type of signal on the longer-term charts, perhaps the daily timeframe. Because of this, I think that the market will eventually fire off a signal that we can follow, and I suspect that the buyers will eventually come looking for value, but right now I need to see it prove itself on the daily chart, something that it is not doing. Because of this, I will keep you abreast as to what I am doing here at FX Empire, and most certainly will record a video and write an article about the next day. Ultimately, I think that the next couple of days should be very important for the German index.