DAX Price Forecast September 28, 2017, Technical Analysis

The German index gapped higher at the open on Wednesday, and then shot towards the €12,700 level. The market pulled back a bit from there, reaching towards the €12,650 level. The market looks likely to continue going higher, as we should then reach towards the €12,750 level next. Longer-term, I believe that we go to the €13,000 level, and pullbacks continue to be buying opportunities. The gap below which starts at the €12,600 level should be thought of as support, and therefore eventually the “floor.” I believe that the market continues to look healthy overall, and with the EUR/USD pair rolling over a bit, that helps with German exports as well. Ultimately, this market should favor buyers, even though we may get some volatility occasionally.

The German index tends to be the blue-chip index for the European Union, and lead the rest of the indices in that region. It is because of this that paying attention to the DAX is crucial, that even if you are trading the MIB, the CAC, or even the AMX. The markets continue to take their cues from Germany which of course is the largest economy in the EU. As the economic announcements have been stronger out of Germany, and the election is now out of the way, it’s likely that we will continue to see DAX rally and therefore the rest of the European Union follow. I believe that pullbacks are to be thought of as value, and shorting this market is almost impossible as we have seen so much bullish attitude in this market every time we have fallen in the past. It looks to me as if there is a major cluster of support extending between €12,500 and €12,600 above that level. With all that noise, I would have to think that there is plenty of support.

DAX Video 28.9.17