DAX Index Price Forecast June 29, 2017, Technical Analysis

The German index had a volatile session, initially falling but then turning around significantly to race towards the €12,650 level. We found a significant amount of resistance there, and then bounced back and forth to show signs of volatility. If we can break above the highs from the session, the market should continue to go much higher, perhaps reach towards the €12,800 level. This market should continue to show signs of choppiness, but I still believe in the upward momentum of the DAX longer term. I believe that the market will then find plenty of buyers on dips, and if we remain above the €12,500 level, we are in this range that should send the market higher. I believe that the uptrend extends all the way down to the €12,000 level, so if we can stay above their longer-term, I feel that the buyers will eventually take to this market.

Longer-term volatility

I think that no matter what happens, this market will be volatile due to the uncertainty surrounding the British leaving the European Union. It’s likely that the markets will continue to favor the DAX overall, but there are going to be headlines from time to time that may move this market rapidly against the DAX or all things European related. Longer-term, I believe that we are going to go looking for the €13,000 level above, which is a significant target. If we can break above there, the market should continue to go much higher, but I think we need a lot more in the way of certainty to see that happen anytime soon. I think continue to buy the dips overall is probably how one the plane this market through the rest of the summer. If we do breakdown below 12,000, that could be catastrophic.

DAX Video 29.6.17