Yahoo Finance DAX Price Forecast October 26, 2017, Technical Analysis
The German index went sideways initially during the day on Wednesday, as we hovered above the €13,000 level. We broke down below the €13,000 level, and then went looking towards the €12,900 level. That’s an area that should continue to be supportive, so I think that the bounce that we are seeing on the hourly chart makes sense. We formed a nice-looking hammer just above that region, so given enough time I think we go towards the 13,000 level again, sending this market much higher. I believe the longer-term attitude of the DAX being positive, as the German markets continue to look very strong. I think that buying on the dip continues to be the best way to play this market, and that is what we have just seen. Having said that, if we broke down below the €12,900 level, the market could breakdown rather significantly, perhaps down to the €12,750 level.
The volatility will probably continue, but ultimately, I believe the stock markets in general continue to look healthy, and that the overall attitude of markets will be to go to the upside, including Germany and perhaps even the specially Germany as it is the center of the European Union. Ultimately, adding slowly to your winning positions will probably be the best way to go forward, as we can mitigate some of our danger by trading slowly. Ultimately, this market I think goes towards the €15,000 level, but it’s going to take a while to get there. Pay attention to the EUR/USD pair, if that market roles over significantly, that could supercharge the move to the upside, as it makes German exports cheaper. During the session today, we will have Mario Draghi giving a press conference after an interest rate announcement, so that of course could influence the DAX as well.
DAX Video 26.10.17
This article was originally posted on FX Empire
