DAX Price Forecast December 8, 2017, Technical Analysis

The German index gapped higher during the open during the session on Thursday, rallying after that. We pulled back to the €13,000 level to find support, and then turned around to break out to a fresh, new high during the day. We are struggling a bit at the €13,100 level, but I think we will eventually break out above there. The DAX has a lot of work to do, but I think will continue to find buyers as the DAX is the gateway for the European Union. The €13,200 level above is the top of the overall consolidated area, and I think that is the target. A break above there should send this market to the €13,500 level. Keep in mind that there are several German numbers coming out during the day, and of course the jobs number in America, so it’s likely that we will see a lot of volatility during the day today.

However, I look at pullbacks as a potential opportunity for longer-term traders to pick up small bits and pieces of the DAX, giving you an opportunity to build a longer-term position. It’s not until we break down below the €12,800 level that I would be comfortable shorting the market, and this being the case, it’s likely that I will be shorting anytime soon. Longer-term, the DAX has been bullish, and I think we are simply trying to build up momentum to go higher over the longer term. Being cautious makes sense during the Nonfarm Payroll Friday session though. Keep your position sizes reasonable.

DAX Video 08.12.17