DAX Index Price Forecast October 6, 2017, Technical Analysis

The German index rallied slightly during the day on Thursday, as we continue to find buyers on dips. The €13,000 level above offers a significant amount of resistance, so I think it’s can be difficult to break out above there. Because of this, I think that it is only a matter of time before the buyers get with a wide, but we may have to attempt the break out several times. I look at dips as value, and when I look at the hourly chart, you can see clearly that the 24-hour exponential moving average has offered dynamic support.

On a break above the €13,000 level, I think we are free to go much higher. The DAX continues to lead the rest the European Union, so not only would it be a signal to start buying the DAX, but it is also a signal to start looking for buying opportunities in the MIB, IBEX, and the CAC. Because of this, I think that the DAX is one of the most important chart you can follow in the European Union right now, as it will show a “risk on” move when it comes to the European Union overall.

I believe that the €12,900 level underneath should offer support, so I like these pullbacks that show signs of strength or stability that I can take advantage of. Alternately, if we can break above the €13,000 level, I think that level should then start acting as a floor for a market that is ready to go much higher, eventually looking towards the €15,000 level, sometime next year. Keep in mind that this market has extended the rally rather drastically, so I think it may take some grinding to build up the necessary momentum for the next psychological barrier to be taken out.

DAX Video 06.10.17