DAX Index Price Forecast November 6, 2017, Technical Analysis

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The German index initially fell during the trading session on Friday, as we have reached a psychologically important level of €13,500. The pullback was quickly turned around due to the EUR/USD pair falling, and we have reached towards the €13,500 level again. On the hourly chart, you can see that I have put an ascending … Continue reading DAX Index Price Forecast November 6, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Fri, Nov 3, 2017, 11:15 PM

The German index initially fell during the trading session on Friday, as we have reached a psychologically important level of €13,500. The pullback was quickly turned around due to the EUR/USD pair falling, and we have reached towards the €13,500 level again. On the hourly chart, you can see that I have put an ascending triangle in purple, and it suggests that we are trying to build up enough momentum to break out to the upside. However, we do have a gap below that needs to be filled, so I look at this as a market that will eventually give me a nice trading signal. If we were to break down below the €13,400 level, then I think we go looking to fill the gap below, dropping down towards the €13,250 level. Alternately, if we were to break above the €13,500 level, then I am a buyer and I believe that we go much higher, but would put stop losses just underneath the €13,500 level if we get a move to the upside.

Ultimately, this is a market that should continue to see a lot of choppiness, but quite frankly I think that the DAX will continue to look very healthy, as it is the bellwether of the European Union, which looks as if it is trying to strengthen in general. Obviously, if the European Union rallies, so should the DAX. Ultimately, this is a market that shows quite a bit of promise, and therefore I think that if we do get the pullback, I would probably take a smaller than usual position, as it is going against the overall uptrend that we have seen over the last several months. The DAX continues to impress, and I see no end to the positivity.