DAX Index Price Forecast September 19, 2017, Technical Analysis

The German index gapped higher at the open on Monday, and then turned back around to fill that gap. The gap of course is a bullish sign, and a significant support level just below also helps this market as well. The €12,500 level continues to offer support for a market that looks ready to go higher. Because of this, I am very bullish of this market going forward, and I believe that we could go as high as €12,800 in the short term. Ultimately, if we did breakdown below the €12,500 level, I think that we will probably go looking towards the €12,300 level below, which was the scene of a gap several days ago. Either way, I feel that this is a market that is to be bought on the dips, and I have no interest in shorting. Granted, the EUR/USD pair has been skyrocketing as of late, and that does make German exports a bit more expensive, but at the end of the day I think that a lot of what we’re seeing in this chart should do with true strength in the European Union.

DAX Video 19.9.17

Buying dips

I continue to buy dips in this market, as I believe that the DAX will lead the way for the rest the European Union and perhaps even beyond there. With this, the market I think eventually goes to the €13,000 level, but it’s going to take a while to get there. If we do get above that level, then the next longer-term target would be the €15,000 level. I don’t have any interest in shorting, least not until we were to break down below the gap from several sessions ago, which would have me selling somewhere near the €12,250 level. Overall, the DAX is one of my favorite indices right now.