DAX Index Price forecast for the week of October 2, 2017, Technical Analysis

The German index rallied again this week, as we are looking towards the high is again. I think that the market closing towards the top of the range for the week shows that we will eventually break out, and reach towards the €13,000 level. I think a break above there is imminent, and once we get that, the market should become more of a “buy-and-hold” scenario. I like buying dips, I think they offer value in that the market will eventually go much higher. I also believe that the €12,000 level underneath is the “floor”, and longer-term traders will continue to be attracted to this market when we pullback. I think that we may get volatile days from time to time, but in general the longer-term uptrend certainly seems healthy and intact, so look at those pullbacks as value.

I believe that the market continues to follow global growth, and Germany is doing quite well. After the German elections, there was a little bit of a negative reaction, but I believe we are far beyond that now. With this being the case, I think that selling is all but impossible, at least not until we would breakdown below the €12,000 level, which would probably take some type of news event to happen. With this, I remain bullish of the DAX, believe it will lead the rest the European Union higher. This includes the CAC, the MIB, the AMX, and even the IBEX. I believe that the DAX will continue to be one of the better performers worldwide as well, so therefore I am very bullish of the German index, as it is the first place money goes to when entering the European Union, much like the Dow Jones Industrial Average in the United States.

DAX Video 02.10.17