German index falls during Tuesday session
The German index rolled over to the downside during the trading session on Tuesday, reaching down towards the €12,500 level. This is an area that I think will offer a significant amount of support, and I believe that it is only a matter of time before we find buyers based upon value. Ultimately, I think that we could then go to the €12,750 level, and then eventually the €13,000 level. I believe that the DAX will eventually find the buyers that it needs, and that the overall attitude of market participants remains bullish, even though it has been negative on Tuesday.
When I look at the chart, I believe that the €12,000 level is essentially the “floor” in the market, and that if we were to break down below there are things we get rather ugly. I do believe that it is only a matter of time before value hunters turn this thing around, so I’m not necessarily interested in shorting, even if we do breakout a bit. I look at the €12,400 level as the next support level and would “reset my expectations” at that point. I like the idea of buying value as it appears, and I think that most traders around the world feel the same way about Germany itself.
The EUR/USD pair is trying to bounce a bit during the American session on Tuesday, and that could put a little bit of bearish pressure on German stocks, but overall, I believe that we will continue to see a reason to go higher.
DAX Video 25.04.18
This article was originally posted on FX Empire
