DAX Price forecast for the week of October 30, 2017, Technical Analysis

The German index initially fell during the week, but found enough support underneath the €13,000 level to turn things around and push the market to the upside. By breaking above the €13,200 level, the market should continue to expand and extend to the upside. The candle is a very bullish, and with the EUR/USD falling apart it makes sense that the DAX continues to rally due to cheaper German exports. Mario Draghi has been very dovish all the sudden, and that of course means that the market will continue to punish the EUR. By extension, the 13,000-level underneath should offer a “floor” in the market, I believe that the €12,500 level is massively supportive underneath, and I believe that the uptrend is still intact if we are above that level. I think longer-term, we will probably reach towards the €14,000 level, followed by the €15,000 level.

A breakdown below the €12,000 level would be somewhat catastrophic, but right now I think that we will continue to follow this gentle uptrend, and therefore will we dip, I’m looking for value in the DAX as it is the bellwether for the European Union, which of course seems to be strengthening in general, even with a somewhat accommodative monetary policy coming from the central bank. The market continues to see a lot of noise occasionally, but overall, I believe that the buyers will return based upon value. Longer-term traders love the DAX, as it is considered to be the “safest” way to invest in the European Union. I think that the steady march higher continues, and by adding slowly on dips, you can build up a large position for the move that is coming over the next couple of months in it.

DAX Video 30.10.17