DAX Index Price forecast for the week of November 20, 2017, Technical Analysis
The German index fell during most of the week, but found enough support underneath the €13,000 level to form a little bit of a bounce. If we can break above the €13,000 level, I look at that as a confirmation that we are going to continue to go higher, perhaps reaching towards the highs again at the €13,500 level. The market has been very bullish in general, and I think that it continues to offer buying opportunities on these pullbacks, and the recent rally that we have seen and the pullback is testing a major resistance barrier from the past, which should now make quite a bit of support. Market memory dictates that we should rally from here, and I think that we will.
If we were to fall from here, I believe that the €12,500 level would also be very supportive. Longer-term, I still believe that the DAX goes to the €15,000 level, and possibly even higher than that. If we were to break down below the €12,000 level, that would be an extraordinarily negative sign, and could send the market much lower. I believe that the DAX will lead the way for the rest of the European Union, and although we have seen a resurgence in the bullishness when it comes to the EUR/USD, I believe that eventually we get back to the fundamentals and beyond the idea of currency headwinds. The European Union continues to strengthen fundamentally, even though there is an extension of quantitative easing. Longer-term, I believe that buying on the dips continues to serve the investor well, and therefore we should continue to do that when given the opportunity. It’s not until we break towards the €15,000 level that I think we find massive resistance.
This article was originally posted on FX Empire
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