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The German index has gone sideways over the last couple of sessions, showing signs of exhaustion. We have a rallied rather significantly, and I think that we are taking a bit of a breather. I believe that the €13,000 level above is offering resistance, but I do think that eventually we break above that level. We may need to pull back in the short term, but that should be thought of as a buying opportunity this is a market that has seen a lot of back-and-forth sideways action, so if you have the ability to trade short-term charts, you could use this is a scalping opportunity, using the stochastic oscillator as a signal.
If we did break down below the €12,700 level, I think at that point the market would break down rather significantly. I don’t think that happens though, and I look at short-term pullbacks as value just waiting to happen. I like the idea of going long of this market on pullbacks as they offer value. I like the idea buying the DAX in general, because quite frankly it is the easiest way to play the European Union. Ultimately, I have a longer-term target of €15,000, but as to take a while to get there. I believe that short-term pullbacks continue to offer opportunities to add to a core position, moving very slowly and adding as we continue to drift higher. I’m not looking for a quick move, I think it’s good to be more of a grind in general.
DAX Video 16.05.18
This article was originally posted on FX Empire