Yahoo Finance DAX Index Price Forecast November 16, 2017, Technical Analysis
The German index gapped lower and below the €13,000 level at the open on Wednesday, and then proceeded to drive down to the €12,900 area. This is an area that I said signify the bottom of support, and if we can break above the gap from the open during the day, I think this would be a very bullish sign, perhaps sending the DAX looking for the €13,250 level next. Alternately, if we roll over from here and break down below the €13,000 level, the market could drop down to the €12,850 level. If we break down below there, the market could go much lower, perhaps down to the €12,750 level, perhaps even the €12,500 level after that. I suspect there will continue to be a lot of volatility and I believe that the EUR/USD pair going higher has offered quite a bit of bearish pressure in the DAX, as it makes the idea of German exports much more expensive. However, I think that the EU continues to show signs of life, and that should send this market higher as well, ignoring currency headwinds.
If we were to break above the €13,250 level, we will make another attempt at the €13,500 level. A break above there census market much higher, perhaps towards the €40,000 level over the longer term. Pullbacks of this point could be negative, but if we make a fresh, new low, I suspect we would start selling at that point. In general, I believe that the buyers will probably come back into play, but until we break out above that gap, it’s very unlikely that I would put money to work, because of the potential issue and noise. The market is most certainly in an uptrend over the longer term, so therefore I do prefer buying effective the opportunity.
DAX Video 16.11.17
This article was originally posted on FX Empire
