DAX Price Forecast – German index falls slightly during the trading session on Tuesday

The German index initially try to rally towards the €12,950 level but turned around to fall towards the €12,850 level. The market has plenty of support underneath, and so far we have made supportive bounces at higher levels since bottoming on 30 May. I believe that the market should eventually continue to go higher, and in the short term I have a target of the €13,000 handle, but it may take some time to get there. This is a market that has a lot to work itself through, not the least of which will be the ECB meeting tomorrow. I think that if all things being equal, we will probably continue to grind higher. The key word here of course is “grind.”

Once we break above the €13,000 level, the market should continue to go towards the €13,200 level after that. Selling is not a thought, at least not until we make a fresh, new low, something that doesn’t look likely to happen in the short term. That’s not to say that we can’t pull back, we most certainly can and probably will, but I think that the buyers are gradually starting to become much more aggressive. Longer-term, I anticipate that this market could go to the €15,000 level above. Obviously, that’s a longer-term situation, so it’s obvious that it will take quite some time to get there.

DAX Video 13.06.18