DAX Index Price Forecast October 25, 2017, Technical Analysis

The German index initially rallied on Tuesday, but found a bit of pressure near the €13,050 level again. This is a market that continues to grind its way to the upside, but I also recognize the most important part of this chart is that we are making “higher lows.” Because of this, it’s likely that we will eventually be able to break out to the upside and continue the longer-term uptrend. It should also be noted that while volatile, the 24-hour exponential moving average has turned to the upside again, which of course is also a bullish sign. It looks as if the €13,000 level should offer support, and that being the case I am comfortable buying here, but I also recognize that patients may be needed to take advantage of the impending break out.

If the EUR/USD pair breaks down significantly, it could help the DAX go higher as well, as it allows German exports to be cheaper for foreign countries around the world. In general, equities have been rallying for some time, and of course the DAX hasn’t been any different. The German index is the easiest way to play the European Union, and with that economy strengthening, I believe that the DAX will continue to attract money. It makes sense that we have gone sideways for a while, because the €13,000 level of course is a large, round, psychologically significant number. Ultimately, the market should continue to cause a lot of volatility due to headlines and of course earnings season coming out of the United States, which has a knock-on effect when it comes to the DAX. Ultimately, equities tend to move in the same general direction, so keep an eye on stock markets around the world, as they can give you a “heads up” on what the DAX does next.

DAX Video 25.10.17