DAX: My Long Term View - 1-3 months
Past week DAX had a minor dip and found support at the 8500 level, this was not a surprise as there was a gap to fill down here around 8510 which has now been closed. I still favor the DAX to reach 9,000 within the next 1-2 months and then onto 9,500 thereafter within 4-6 months, but 8800 will need to be cleared first which should allow a fast push for the 9,000, this should hold as a strong resistance initially when reached.
I'm not the worlds biggest fan of 'fundamentals' and I tend not to use them, but I try to think of what other investors will be doing to help with my analysis, and I believe that the DAX will be one of the favorite markets for investors as its currently being seen as a safe economy. There is a lot of big bucks coming into peripheral Europe and many of those bucks will be invested into the DAX becasue of its blue-chip status.
This also adds weight to my technical theory that we will hit 9,000 in the near future. Germany is a far more stable and reliable economy to that of its surrounding markets and over seas markets.
I can see no sign of major weakness on the DAX and no sustainable reasons why the DAX should sell-off. Therefore I view any retracments or minor sell-offs as buying opportunities for investors.
As an intraday trader myself rather than a long term investor, my best trades will likely come from trading with the trend rather than against it, so I will also be adopting the buy the dip attitude on an intraday basis.
Going forward - Pullbacks that can hold above 8620 as the cut-off point in the near term should be used as buying opportunities.
I will provide my 'daily' support and resistance on Monday.
dare I ask how you calculate levels :?:
