DAX slips slightly during Friday session

The German index of course has rallied significantly during the session on Friday, as we continue to see buyers jump into this market. The €13,100 level has offered a little bit of resistance, and I think that if we can break above that level, it’s likely that we continue to go higher, perhaps towards the €13,250 level. I think that short-term pullbacks continue to offer plenty of buying opportunities for those who are willing to take advantage of them, and I believe that the market will continue to favor the DAX to the upside.

I like the idea of adding every time the market goes higher, as we could build up a larger position overall. I believe that the €12,750 level underneath is massive support, and I would be very surprised to see this market break down below there. If we did, I think that the entirety of the uptrend is defined by staying above the €12,000 level, as it is the “floor” of the overall attitude of the market.

I believe that the market will probably go as high as the €15,000 level over the longer-term, but obviously there will be the occasional pullback along the way that offers an opportunity to add to that position as we break to the upside. I like the idea of building a core position and adding to it so that we can take advantage of the move, and of course collect profits along the way as we continue to enjoy such a strong and obvious uptrend.

DAX Video 21.05.18