DAX showing signs of strength again on Tuesday

The German index rallied a bit during the trading session on Tuesday, showing signs of resiliency again. The €12,500 level above is a target, and I think that if we can break above there, the market should continue to go much higher. Pullbacks are buying opportunities obviously, but I think that the €12,000 level will be crucial for support. I think that the market will continue to look at that level as important, not to mention the fact that there is a massive support level at the €11,800 level under that, and of course the daily uptrend line that has coincided with that recent support level.

I believe in buying on dips, and I believe in adding slowly. The key word of course is slowly, so I would not look for major moves right away. I think that we will chop around with a slightly upward trajectory, perhaps reaching towards the €13,000 level. Longer-term, I have the €15,000 level as a target, but it’s obviously going to take a lot of work to get above there. I believe that this will be a move to take several months to accomplish, and of course the DAX will be sensitive to headlines coming out of both the United States and China, as all other stock markets will be due to the potential of a trade war. Any failure to calm things down will send these markets lower, but then again as it looks like the Chinese are trying to work things out with the Americans, or at least settle things down, the upward pressure will show itself after conciliatory words.

DAX Video 11.04.18