DAX initially falls during the week but find buyers

The German index initially fell during the week but found enough resistance underneath to turn things around and show signs of life at the €12,350 level. The market continues to show plenty of volatility, but more importantly than that: resilience. By doing so, I think the hammer will attract a lot of attention, and if we can break above the €12,750 level, the market will be free to go much higher. Once we clear that area, the €13,500 level will more than likely be targeted, and you should keep in mind that this market will probably be greatly influenced by the risk appetite around the world, as there are a lot of moving pieces. I think that given enough time, we will probably find reasons to go higher, as the recent correction has offered a lot of value.

If we can finally break above the €13,600 level, we will of course be free to go much higher as it is a fresh, new high. The falling value of the EUR/USD pair certainly could help as well, so keep that in mind. I think overall though, stock markets will tend to move in the same direction as per usual, and as the DAX is the main index most people use to play the European Union and makes sense that money would go flowing into here first. If the DAX takes off to the upside, more than likely other indices in the EU will as well.

DAX Video 30.04.18