Yahoo Finance DAX Index Price Forecast December 12, 2017, Technical Analysis
The German index gapped higher at the open on Friday, reaching as high as the €13,250 level before turning around. By turning around, the market filled the gap on Monday, and it now looks as if the DAX is ready to go higher. A break above towards the €13,250 level should send this market to much higher levels, perhaps adding to the longer-term uptrend. I think that the €13,000 level underneath is the “floor”, and I think that the market will stay above there. If we were to break down below the €13,000 level, the market will come undone. I doubt that’s going to happen though, so having said that it’s likely that the buyers will continue to come back to this market, perhaps reaching towards the €15,000 level longer term. That is my longer-term target, but there is going to be a lot of noise between now and then, offering plenty of buying opportunities repeatedly. I think that the short-term traders will continue to favor the upside, and of course will continue to take advantage of what has been such a strong move.
I think that longer-term buy-and-hold traders will probably struggle a bit though, because I would anticipate a lot of noise and volatility. I don’t think that we are going to get to the €15,000 level quickly, and it will take a long time to get there. Ultimately, if the market were to suddenly get impulsive to the upside, it’s likely that the pullback will be just as vicious. This is a market that continues to be one of my favorites, but I also recognize that there is a significant amount of danger.
DAX Video 12.12.17
This article was originally posted on FX Empire
