DAX Index Price Forecast November 27, 2017, Technical Analysis

The German index rallied significantly during the trading session on Friday, reaching towards the €13,150 level, before pulling back and reaching towards the €13,000 level. Given enough time, the buyers should continue to be attracted to the €13,000 level as it is a major level on longer-term charts. A break above the €13,200 level should send this market reaching towards the €13,500 level above, which offered significant resistance in the past. Short-term traders will continue to like buying pullbacks, as they offer value in a market that is obviously bullish long term. I also recognize that there is a significant amount of support underneath at the €12,800 level, and I consider that the bottom of the uptrend that we are currently in. If we were to break down below there, that would change everything obviously, but with the way that we’ve seen this market make “higher lows” on the hourly chart, it’s likely that we continue to go higher.

If we were to break down below the €12,800 level, then I suspect that the next move would be to the €12,500 level underneath, which of course has a certain amount of psychological importance. In general, this is a market that I like the most out of European indices, because Germany of course is such a huge part of the European Union GDP. As the European Union looks to be doing reasonably well all things considered, and of course the ECB continues to be accommodative in its monetary policy, I think that the DAX will attract money going forward. I recognize that a break above the €13,500 level sends this market much higher, perhaps to the €14,000 level, but that’s obviously a move for next year. In the meantime, short-term buying the dips remains the strategy.

DAX Video 27.11.17