Yahoo Finance DAX rallies during strong Tuesday session
The German index rallied rather significantly during the trading session on Tuesday, breaking above the €12,600 level initially. We did pull back slightly, but I think there are buyers below willing to take advantage of value when it appears. The €12,500 level underneath should be supportive, as it was resistance previously. I think that we should find buyers underneath though, so I like buying dips when they happen. The €12,000 level underneath is massive support, and I think that we will continue to see value hunters coming back into this market.
The €13,000 level above is the target over the longer term, with the €12,750 level being an initial target. I think that every time we pull back, buyers should continue to be flooding into this market, as it shows signs of value when we have the opportunity to take advantage of it. The €12,000 level underneath should determine whether we are in an up or downtrend, and it looks like we are nowhere near breaking down below there. The market will be choppy and noisy, so I would be cautious about putting too much into this market right away, so I would build up the position slowly, as the volatility could be very dangerous. However, I think that longer-term we will continue to see the markets rally and reached a much higher levels. If we were to break down below the €12,000 level, the market is likely to go much lower, perhaps down to the €11,800 level.
DAX Video 18.04.18
This article was originally posted on FX Empire
