DAX Forecast August 13, 2014, Technical Analysis » Fx Empire …
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The German index fell during the session on Tuesday, closing just below the €9100 level. That being the case, the market looks like it’s going to continue to bounce around the €9000 handle in general, as the market needs to decide whether it wants to go lower, or perhaps try to fight its way higher from here. A break above the €9250 level suggests that the market is in fact heading to the €9600 level, where there is a significant amount of resistance based upon previous consolidation in our opinion.
On the other hand, if we break down below the €8900 level, we feel that this market could in fact break down a little bit towards the €8000 level. The meantime, we would anticipate the German index to grind sideways, and as a result we think that the short-term traders will continue to buy and sell this market back and forth.
You have to keep in mind that the DAX is one of the first places that money finds its way to in the European Union as it is considered to be one of the “safest” markets to be involved in. With that, it’s a bit of a way to “test the waters” of European markets. Don’t get us wrong, Europe has a lot of problems at the moment, but at the end of the day the European Support Bank will do what he can to bring down the value of the Euro, which should make European stocks more attractive in the longer term.
However, as long as there are fears of deflation in the European Union, the stock markets will be prone to fits and starts like we’ve seen recently. The market believes that the DAX can find some type of happy medium in this area, so as long as that’s the case we believe that the market will probably be best traded on the short-term charts, but we have to keep an eye on longer-term charts for guidance overall. Ultimately, we have to break out of this range in order to trade with any significant confidence.
DAX Forecast August 13, 2014, Technical Analysis
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DAX Forecast August 13, 2014, Technical Analysis » Fx Empire …
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