DAX Index Price Forecast October 4, 2017, Technical Analysis
German traders initially sent the market higher at the open on Tuesday, gapping towards the €12,875 level. Ultimately, I believe that pullbacks should offer buying opportunities, with the €13,000 level being a target and of course a significant resistance barrier. Once we break above there, I think it becomes more of a “buy-and-hold” market. The German market leads the way for the rest of the European Union, especially if the EUR/USD pair falls as it makes German exports cheaper. Longer-term, I believe that the markets will continue to find buyers on dips as it represents a nice opportunity to pick up value. The market should find plenty of support at the 24-hour exponential moving average as you can see on the hourly chart, and that it’s only a matter of time before people go looking to get long of a market that has shown such resiliency.
The €12,750 level offers psychological support, and I believe that if we can break above the €13,000 level, I think that the next target in the buy-and-hold scenario is probably the €13,100 level as it is the next large number. However, I believe that most traders look at the DAX as a market that they invest in, not necessarily trade short term. I believe that there is plenty of support below to keep longer-term sellers away, especially as economic figures out of the European Union continue to favor higher stock pricing by the large multinationals that we see in Germany.
In fact, it’s not until we break down below the €12,500 level that I would consider selling, with €12,000 underneath being the next major support level. If we break down below €12,500, I think that the sellers get a bit more aggressive. However, looking to this chart it seems like it’s very unlikely to happen.
DAX Video 04.10.17
This article was originally posted on FX Empire