DAX Index Price Forecast November 30, 2017, Technical Analysis

The German index rallied slightly at the open on Wednesday, but rolled over significantly to reach towards the €1300 level, as Teresa May suggested that the deal with the European Union from the United Kingdom wasn’t necessarily completed. Beyond that, German inflation is starting to pick up and that suggests that perhaps the ECB will be a bit tighter in the future. I think this is a short-term blurb though, and I expect to see buyers come back in at about the €13,000 level. If you look at the hourly chart, you can see there is a little bit of an uptrend over the last couple of weeks, but it has been very noisy and I don’t see any reason to think that it’s going to be any different. Because of that, given enough time I think that the buyers will return, but it’s not necessarily going to be the easiest trade to take.

I think that the market breaking above the €13,250 level would be the next sign that we are going higher, and I have a longer-term target of 13,500 again, but it’s going to be very choppy on the way up so I believe in adding small bits and pieces on the way up on dips. There’s no need to jump into this market with both feet, as it will more than likely remain volatile enough to give you plenty of opportunities. If we were to break down below the €12,800 level, I think at that point the market probably goes down to the €12,500 level, and although possible, I don’t think that’s as likely as a rally as we have been seeing higher lows as of late. The market continues to be noisy, yet positive in my view.

DAX Video 30.11.17