German index falls on Thursday

The German index fell during trading on Thursday but remains well above a significant amount of support in the form of the €12,750 level. That’s an area that I think will eventually attract a lot of buyers, and I think that any bounce would be looked at as an opportunity to start going long again. If we can break above the €13,000 level, that would also be a very bullish sign, perhaps sending the market even higher, with an eye on the €13,500 level. I believe that the market should continue to be noisy, yet bullish overall as Germany is the first place where people throw money at when trying to involve themselves in the European Union.

I would add slowly as we continue to make fresh highs, billing to a larger core position that we are trying to build. I think that the recent “W pattern” on the hourly chart from a couple of days ago signifies that we have in fact found a bit of a base, and now are trying to find a catalyst to start buying. Overall, I think that we will eventually go looking towards the €15,000 level, which is the longer-term target from weekly and monthly traders from what I can see based upon the charts. That doesn’t mean that we are going to get there anytime soon, but it is what drives my bias in the short term, an upward move just waiting to happen.

DAX Video 08.06.18