Yahoo Finance DAX Index Price Forecast December 13, 2017, Technical Analysis
The German index rallied after initially dipping on Tuesday, as the €13,100 level has offered support. Now that we have rallied from there, I think we will go looking towards the €13,250 level, and perhaps even break above there. Longer-term, I believe that the DAX goes looking towards the €15,000 level, which makes a lot of sense from a psychological standpoint. I think that the €13,000 level continues to offer technical support, and that the bullishness of the DAX will continue to be a theme going into 2018.
The volatility will course remain, but towards the end of the year we get a bit of a “Santa Claus rally” on Wall Street, and that tends to have a bit of an effect on other stock markets around the world. The EUR/USD pair has been drifting a little bit lower during the day, and that of course helps the idea of cheaper German exports as well. Longer-term, I think that every dip offers a buying opportunity, and I am willing to add small positions as we continue to go higher. I think that adding and building a large position is probably the best way to play the DAX, as it is the de facto index for the European Union. As money goes looking towards the EU, the DAX is quite often the first place it runs towards. I think it would take a significant shift in attitude to make this a market that can be shorted, something that I don’t see currently.
DAX Video 13.12.17
This article was originally posted on FX Empire
