Yahoo Finance DAX Index Price Forecast December 7, 2017, Technical Analysis
The German index gapped lower at the open on Wednesday, but then turned around to fill that gap, slamming into the vital €13,000 level. That of course is a very important area, as it is a large, round, psychologically significant number, and essentially “for value” of the recent consolidation. At this point, we are essentially a “no man’s land”, meaning that placing a trade right away would be very difficult. However, if we break out in one direction or the other by more than €50, then I think you can assume that we go to the corresponding part of consolidation, meaning that a breakout to the upside probably sends this market towards the €13,200 level. Alternately, if we break down we probably go looking towards the €12,800 level underneath.
The markets continue to be very choppy, but I believe longer-term we have reason to believe that the DAX will continue to attract a lot of money, as it is the first place people put money into the European Union. Ultimately, I believe that we will break above the €13,200 level, and go looking towards the €13,500 level next. If you keep your leverage level, I believe that the DAX is probably one of the better markets to be involved in, and as usual I believe that the dips will offer value in the DAX which is one of the stronger markets around the world. I believe that will be the thesis going forward, if we can stay above the vital €12,800 level. A breakdown below there probably accelerates the downward pressure to the €12,500 level next. However, I don’t believe that’s likely to happen.
DAX Video 07.12.17
This article was originally posted on FX Empire
