Yahoo Finance DAX Index Price Forecast October 13, 2017, Technical Analysis
The German index initially fell during the day on Thursday, but found enough support near the 12,950 level to turn around and bounce towards the 13,000 level. A break above the 13,000 level is very bullish, and it’s an area that we been fighting with for some time. Because of this, if we can close on the daily charts above that level, I think we will find plenty of new money run into the market as it has been such an obvious barrier. If we don’t get that break out, then it’s likely that we continue the consolidation, in a bid to build up enough momentum to finally continue higher. I believe that the 12,950-level underneath continues to be supportive, and therefore short-term traders will continue to look at that area as a place to start picking up value.
Ultimately, I suspect that the DAX will go looking towards the 14,000 level above, which is the next large, round, psychologically significant number. The 24-hour moving average is starting to turn up words, which shows that we are indeed picking up momentum. That being said, I believe that once we do get the close above the 13,000 level, you can start building another core position and build up a large holding that should offer plenty of profits over the longer term. Ultimately, this is a market that I think will continue to strengthen as the European Union has been strengthening, and of course Germany is a first-place money goes flowing to. Buying dips in small increments will be the way forward, adding to what should already be a profitable position if you’ve been paying attention to my past trades. If we were to break down below the 12,900 level, I think at that point we may get a bit more of a significant pullback, but even then, I think we will find value at lower levels.
DAX Video 13.10.17
This article was originally posted on FX Empire
