Yahoo Finance DAX Index Price Forecast October 17, 2017, Technical Analysis
The German index gapped higher at the open on Monday, clearing the €13,000 level again. However, we have fallen a bit towards the end of the day, testing an uptrend line on the hourly chart. We are below the €13,000 level as well, so that also is a somewhat negative sign. The 24 hour exponential moving average is still turning to the upside, so that is one sign of strength, but quite frankly I think there is more than enough support extending down to the €12,900 level to keep this market afloat. I’m looking for some type of supportive candle or a bounce to take advantage of. If we can break above the €13,040 level, then we will have made a fresh, new high, which suggests that we are going to continue to go even higher.
I believe that the European Union is going to continue to strengthen in general, and the DAX is one of the benchmarks for that expansion. The German index of course is highly influential when it comes to the stock markets on the continent, as Germany as the largest economy. In fact, some traders that I know use the DAX as a proxy for trading in the European Union overall. If the EU looks healthy, the DAX does as well. Obviously, the exact opposite happens during signs of weakness. I think we will continue to see a bit of volatility, but recently breaking out above the €13,000 level tells me that the market should continue to be well supported and bullish in its attitude. I have a longer-term target of €13,500, but I think in the short term probably looking at a move towards the €13,100 level. If we were to break down below the €12,900 level, I think at that point we go looking for the €12,850 level which has a gap.
DAX Video 17.10.17
This article was originally posted on FX Empire
