DAX Weekly Price Forecast – German index rallies for the week

The German index rallied significantly during the week, reaching towards the €13,200 level. If we can break above that level, the market is likely to continue going higher, perhaps reaching towards the €13,600 level next. Longer-term, I believe that the market probably goes looking towards the €15,000 level. I think short-term pullbacks are buying opportunities, and it looks as if the €12,750 level is going to offer a bit of a “floor” in the uptrend. Even if we break down below there, I think that the €12,000 level is essentially the bottom of the overall buying attitude.

Obviously, there are a lot of factors but the ECB stepping away from raising rates until at least the middle of 2019 makes sense for the bullish case, so therefore I think we continue to look at dips as buying opportunities and value in one of the world’s blue-chip indices. I believe that given enough time, this market should continue to find plenty of reasons to go long, and if you wish to put money into the European Union, the Germany is almost always the first place to go. Overall, I think that the 50 moving average is worth paying attention to as marked on the chart, and it should be noted that it has offered a bit of dynamic support. I’m a buyer, but I would do so slowly and only add once the market proves your position correct. In the meantime, be very cautious and diligent as the headlines will move the DAX right along with other stock markets.

DAX Video 18.06.18

This article was originally posted on FX Empire

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