DAX Index rallies in the CFD market on Friday

The DAX has rally during thin trading on Friday, breaking above the €12,100 level. By doing so, we have not only formed but also have completed a “W pattern”, which of course is a very bullish sign on the one-hour chart. I think that we will continue to go higher from here, once we break above the €12,200 level. Based upon the “W pattern”, I suspect that we are going to go looking towards the €12,500 level, an area where I see resistance anyway. I think that the market should continue to go higher, but I also recognize that we should have some volatility occasionally. If we get that volatility, I look for dips as being buying opportunities, especially if the €12,000 level holds as support. If we break down below that level, there is a significant amount of support extending down to the €11,800 level, where the daily uptrend line crosses.

If we were to break down below the €11,800 level, the market one wind rather drastically, as it would be a potential trend change. However, it doesn’t look like the market is going to do so anytime soon, as there is so much noise underneath. I believe that the market will continue to find plenty of reasons to go higher, especially if we can get good news coming out of the whole trade war talks. If we can get cooler heads prevailing in that situation, I think the stock markets around the world to rally, the DAX included.

DAX Video 02.04.18