DAX rallies slightly during the Friday session, but gives back gains

The German index as you can see has rallied significantly to get above the €12,500 level. I think at this point, the market giving back the gains from there should send this market back towards a buying opportunity near the €12,400 level. I do believe that the DAX will eventually rally, because when you look at the hourly chart from a longer-term perspective, you can see that we had formed a bit of a large “W pattern”, and if we can break above the €12,500 level, it suggests that we are going to go much higher, reaching towards at least the €12,750 level.

A break above that market could send this market to the €13,000 level, and possibly even higher than that. When I look below, I can see a massive amount of support at the €12,000 level, and more importantly the uptrend line that sits just below at the €11,800 level. I believe that this market continues to stay in an uptrend if we can stay above that line, and I think that pullbacks continue to be buying opportunities going forward. I have no interest in shorting until we break down below that uptrend line, which doesn’t look very likely after the move that we have seen during the last several days. Keep in mind that the risk appetite around the world will have a major influence on the DAX, as the concerns about a trade war between the United States and China will continue to be front and center.

DAX Video 16.04.18