DAX Index Price Forecast October 10, 2017, Technical Analysis

The German index gapped slightly higher at the open on Monday, reaching towards the €13,000 level. Ultimately, I think that the level will be difficult to break above, and pullbacks should be buying opportunities as we try to build up the necessary momentum to finally go higher. On a break above the €13,000 level, the market should go looking towards the €13,500 level, and perhaps even the €15,000 level over the longer term. I recognize that it may take several attempts to finally break out to the upside, so buying dips is probably the only thing that you can do. I recognize that Germany is the blue-chip index for the European Union, so therefore it should continue to attract money when people want to invest in the EU.

I see the €12,900 level underneath as supportive, so therefore breakdown below there would be a negative sign, perhaps sending this market down to the €12,800 level. There is plenty of support underneath, but I think that the market is going to struggle enough with the €13,000 level that you can take your time. I don’t see any reason to try to front run the breakout, so unless you get a significant pullback to show signs of support or some type of significant smashing of the €13,000 barrier, it’s probably a market that you can observe and simply wait for the trading opportunity.

I don’t have any interest in selling the DAX, least not anytime soon. I believe that the uptrend is still very much intact if we can stay above the €12,500 level pair went below there that I would become concerned, but I don’t see that happening anytime soon as we have seen so much in the way of buying pressure of the last couple of weeks.

DAX Video 10.10.17