DAX Index Price Forecast July 13, 2017, Technical Analysis

The German index shot through the roof during the day on Wednesday, slicing through the €12,500 level. We have now broken towards the €12,650 level, and it now looks as if any pullback at this point will probably attract buying opportunities as there is so much in the way of bullish pressure. Eventually, I think we will go looking towards the €12,750 level above which was resistance back in late June. The EUR/USD pair looked as if it was going to continue to break out to the upside, but on Wednesday turned around a bit and that helps with the idea of potential exports coming out of Germany. With this in mind, I think that the market will continue to be very volatile, but given enough time I think that the markets will continue to reach higher. In fact, I believe that we are about to turn around and start following the longer-term uptrend.

Buying dips

I believe that we continue to be in a “buy on the dips” type of market, and I think that the €12,500 level will probably offer a bit of a floor in the market, and I think that it is only a matter of time before we not only find buyers there, but at several levels going higher. Ultimately, this is a market that will go looking towards the €13,000 level above which is a large, round, psychologically significant number that will attract a lot of attention.

DAX Video 13.7.17