DAX Index Price forecast for the week of July 17, 2017, Technical Analysis

The German index broke higher during the week, slicing through the €12,500 level, which was previous resistance from the week before. The market looks as if it is going to continue to go higher, perhaps reaching towards the €13,000 level. Ultimately, this is a market that I think continues to find buyers, and ultimately, we will see this index reach not only to the €13,000 level, but break above there and continue to go even higher. I believe that the DAX will continue to lead the way for the rest of the European Union as we typically do see it react as, and I am a buyer of dips going forward. In fact, I believe that the uptrend is still very much intact if we are above the €12,000 level. A breakdown below there would change my attitude overall, but I don’t see that happening anytime soon, as the buyers have been so stringent and look likely to return on pullbacks as signs of value.

Buying on the dips

I believe that buying on the dips is the best way to play the DAX, as it is in a long-term secular bullish market. The market then goes to the 13,000 level before going to the 14,000 level later. This is a market that is choppy in general, but obviously well supported. Pay attention to the EUR/USD pair, if it breaks out to the upside it’s possible that it could work against the volume of German exports, which could be a very negative sign for this market. However, it appears that the DAX is continuing to chug higher, so I should believe that the buyers continue to be the biggest drivers of this market, and therefore we should continue to see that in the charts.

DAX Video 17.7.17