DAX Price Forecast September 27, 2017, Technical Analysis

The German index shot higher during the day on Tuesday, testing the €12,600 level. We pulled back slightly, and rested on that level after initially trying to clear it. The market looks like it is ready to go higher, but I think that short-term pullbacks will be buying opportunities, and I look at them as such. With this in mind, I believe that the market will look at these pullbacks as value, as the DAX tends to be the blue-chip index for the European Union, and a great way to play the strengthening region. Add to that the shrinking value the EUR/USD pair, and that gives us an opportunity to find value in Germany.

I believe that we will eventually go looking towards the €13,000 level, but the €12,750 level above could cause a bit of resistance. I believe that the markets continue to show volatility as we are seeing it everywhere, but ultimately the DAX looks to be one of the best performers that I follow. In fact, I have no interest in shorting this market if we can stay above the €12,500 level, and right now looks like we will be able to. Because of this, I remain confident in the German market, and with the currency falling, that should continue to make German exports cheaper, which of course should only help the value of the DAX with those exporting markets. Given enough time, I anticipate that this will become a “buy-and-hold” market, but we are not there quite yet. I think short-term buying continues to lead the way, as a buy the dips mentality continues to be the overall attitude of markets. I believe that there is a significant amount of support below, and that value investing is the path of least resistance.

DAX Video 27.9.17