The DAX does almost nothing on Friday
The German index went sideways initially during the trading session on Friday, with a slight downward trend. The €12,500 level continues to be supportive, but I think that eventually we will see a bit of a pullback based upon a shooting star on the weekly chart. That’s not to say that we are going to break down drastically, just that we are going to be able to find a bit of value underneath. I believe that the €12,000 level underneath is the “floor” in the market, extending down to the €11,800 level. There’s an uptrend line that slices through the general vicinity on the longer-term charts, so I think we are still in an uptrend, even though we have seen a massive breakdown.
The markets continue to be very sensitive to risk appetite in general, as the geopolitical concerns around the world continue to be an issue. I think that the market will continue to see plenty of headlines out there that could move the market, but longer-term I think that if we can stay out of a trade war and of course avoid some type of massive escalation in military action, the DAX and other stock indices around the world should rally. I believe that the market is going to go to the €12,750 level, and perhaps even the €13,000 level. I like buying dips, I believe the DAX continues to be bullish in general, as it is the first-place money goes looking to invest when it comes to the European Union.
DAX Video 23.04.18
This article was originally posted on FX Empire
