DAX Price Forecast August 2, 2017, Technical Analysis

The German index gapped higher at the open on Tuesday, turned around to fill that gap, and then shot to the upside. We have also filled the gap from April, so I believe that the market is going to continue to try to find a bottom, and we should continue to be buyers on dips. I think the market should then go to the €12,500 level over the longer term. I believe that the €12,000 level underneath is the absolute “floor” in the uptrend, so if we can stay above there, I’m looking for buying opportunities. A pullback from here would be a nice buying opportunity, because quite frankly it means that the DAX is undervalued, and therefore offers an opportunity.

I have no interest in selling, least not yet

I may “buy only” trader when it comes to the DAX currently, but I recognize that a move below the €12,000 level would be catastrophic. Because of this, I am looking for supportive candles under need to take advantage of. I would also take advantage of and pulse of moves to the upside, and I believe that the €12,500 level will be massively resistive. That is my initial target. However, from a longer-term standpoint I could see the market going much higher, but obviously we will have some setbacks from time to time. Those setbacks offer value, and should be looked at as such. The EUR/USD pair has been skyrocketing to the upside, and that of course has people concerned about the ability of Germans to export, as it makes their products a much more expensive. However, the EUR/USD pair is rallying due to better than expected European figures, and that of course should help the stock markets. If we remain above the €12,000 level, I am optimistic.

DAX Video 02.8.17