DAX Index Price Forecast June 23, 2017, Technical Analysis

The German index had a positive session on Thursday, reaching towards the €12,800 level. We did pull back a little bit, and I think currently we are essentially in consolidation. That consolidation could be the market trying to build up momentum to the upside again, as it has been grinding higher over the longer term. Move above the €12,800 level has me buying a naming for the €12,900 level next. The €12,700 level looks to be supportive, so I think if we can stay above there, the buyers will be interested. We have seen quite a bit of volatility, and this makes quite a bit of sense considering that we have the negotiations between the European Union and the United Kingdom causing a lot of noise. On top of that, the EUR has been very volatile as well, and that of course will affect German exports.

Patience

Ultimately, I think it will take quite a bit of patience when trading this market, and you may be well served by keeping your position size small, as the market will continue to slam around. However, there is more of an upward proclivity in this market, so by extension I believe that buying is probably the smarter option that you can take, but you’re going to have to be very careful due to all the noise. Ultimately, I do expect that this market will go looking for the €13,000 level, but it could be several weeks before we get there. By gradually adding to your position, you can take advantage of this without hurting yourself too much on the pullbacks. However, if we do breakdown I think that will be somewhat short-lived, because of the longer-term trend. Volatility can be your friend, if you are very careful about how you deal with it.

DAX Video 23.6.17