The German index went sideways during the trading session on Wednesday, as we essentially did nothing. I’m a bit surprised, because it’s counterpart across the English Channel rallied quite nicely. I think that the €12,500 level underneath should offer support, as it was previous resistance. The market should continue to go even higher, perhaps reaching towards the €12,750 level, and then eventually the €13,000 level. Ultimately, I think that when we do pullback, it is going to offer a certain amount of support and value the people will take advantage of. The €12,400 level is the bottom of the overall support level that starts at the €12,500 level, which I believe is becoming more important.
If we break down below the €12,400 level, we could drop a couple of hundred euros, but I believe that the bottom of the overall “floor” in the market is closer to the €12,000 level, and if we were to break down below there I think that could unwind the overall uptrend, sending the market down to much lower levels. Ultimately, I think that the market should continue to find value hunters underneath, and I think that adding to your position as we continue to go higher is probably the best way to trade this market over the longer term. Expect a lot of choppiness, but I do believe that overall, we will see a significant amount of upward mobility.
DAX Video 19.04.18
This article was originally posted on FX Empire
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