Market Forecast 28/09/2017

The DAX 30 index remains in a major uptrend above 12,600 and the SPX 500 Index is eying a short-term correction before higher.

DAX 30 Index Forecast – Break above 12,700 Likely

Key Points

  • The DAX 30 index remains in an uptrend and recently moved above the 12,600 resistance.
  • There is an expanding triangle forming with resistance near 12,700 on the 4-hours chart of DAX 30 Index.
  • Today, the Euro Zone Economic Confidence for Sep 2017 was released by the European Commission.
  • The forecast was slated for 112.0, but the actual was better as there was a rise from 111.9 to 113.0.

DAX30H4

The DAX 30 gained a lot of traction recently and moved above the 12,350 resistance area. In the last analysis, we were looking to buy dips for more gains. It worked as the index surged higher and even broke the 12,600 level.

The index traded as high as 12,704 and is currently trading inside an expanding triangle with resistance near 12,700 on the 4-hours chart. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 12,242 low to 12,704 high.

It seems like the index might soon break the 12,700 resistance and trade towards 12,750 in the near term. Buying dips close to the 12,600 can be considered with a tight stop.

Euro Zone Economic Sentiment

Today, the Euro Zone Economic Confidence for Sep 2017 was released by the European Commission. The forecast was slated for an increase from the last reading of 111.9 to 112.00.

However, the actual result was better as there was a rise from 111.9 to 113.0. Moreover, the Business climate indicator also posted an increase from the last revised reading of 1.08 to 1.34 in Sep 2017.

The Industrial Confidence was also up from the last revised reading of 5.0 to 6.6. The overall result was positive, and helped in the improvement of the market sentiment.

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SPX 500 Index Forecast – Dips Remain Supported

Key Points

  • The SPX 500 Index struggled to clear the 2,510 resistance and is currently consolidating.
  • There is a major bullish trend line forming with support at 2,500 on the 4-hours chart of the SPX 500 Index.
  • Today, the US GDP figure for Q2 2017 will be released by the US Department of Labor, which is forecasted to increase by 3% (YoY).

SPX500H4

There was a minor dip in the SPX 500 Index from the 2,500-2,510 levels. However, the downside move was protected by the 2,490 support and the 100 hourly simple moving average.

The index is once again trading near 2,510, but struggling to gain momentum. Therefore, there is a chance of a minor dip towards a major bullish trend line with support at 2,500 on the 4-hours chart.

The trend line support is also near the 50% Fib retracement level of the last wave from the 2,489 low to 2,513 high to act as a barrier for sellers.

Therefore, as long as the index is above the trend line support at 2,500 and the 100 hourly SMA, it remains supported for more gains.

 

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