DAX Index Price Forecast November 1, 2017, Technical Analysis

The German index was very choppy during the trading session on Tuesday as we are sitting just below the €13,250 level. This area is very resistive, so we need to build up enough momentum to finally break above there. Pullbacks might be needed, but I look at pullbacks as buying opportunities as we are very obviously bullish this point. Quite frankly, a pullback would be a nice buying opportunity, as we have obviously shifted into high gear. A break above the €13,250 level is also a buy signal, and quite frankly I don’t have any thoughts of selling into we break down below the €12,900 level, which I have seen as a floor in this market for some time. Recently, we had consolidated quite lengthily, and the break out for me shows that the market has entered its next phase to the upside. Longer-term, the market should then go looking towards the €15,000 level above, which is my next target.

The EUR/USD pair has been softening a bit, and that helps German exports. I think that’s a lot of what we are starting to see, plus the admission by Mario Draghi that we are looking at quantitative easing for much longer than anticipated out of the ECB. Those both add up to higher equity prices in the European Union, and of course the DAX won’t be any different. When I look at the hourly chart, there’s a bit of an ascending triangle, so the next move higher on the breakout probably targets €13,300 right away. I suspect that we would see support at the €13,150 level, the €13,100 level, and that of course the €13,000 level before testing the “floor” in the uptrend that I had previously mentioned. The EUR/USD pair continues to look soft, so eventually we should see the inverse here.

DAX Video 01.11.17