Yahoo Finance DAX Index falls initially on Monday only to show signs of support
The German index pulled back a little bit during the trading session on Monday but found enough support near the psychologically important €12,500 level, if not structural support based upon the previous resistance. Now that we have bounced a bit, I think that the market should continue to go towards the €12,600 level, perhaps even higher than that, perhaps the €12,750 level. I think that the €12,500 a will continue to offer support, and I think that support extends down to at least the €12,000 level.
As you can see, we formed a significant base in the market close to the €11,800 level, and that of course is an area that has formed a bit of a “floor” in the market and the overall long-term uptrend. Now that we have done that, we have started to grind it very gently and in a steady manner to the upside. That is a good sign and I think that the market should continue to go higher based upon what we have seen as of late. When we pull back, it is value and I think that people will continue to look at it as such. I believe that we will go looking towards the €13,000 level, and then eventually to my longer-term target of €15,000 – but that might be a story for next year. Nonetheless, I do like the DAX, and I believe that buying continues to be the best way to approach it.
DAX Video 24.04.18
This article was originally posted on FX Empire
