The DAX 30 index remains elevated above the 12,900 support and the SPX 500 Index remains buy on dips near the 2,545 level.
DAX 30 Index Forecast – Break above 13,000 Possible?
- The DAX 30 index managed to move above the 12,900 resistance level, which is a positive sign.
- There is a short-term bullish trend line forming with support near 12,950 on the 4-hours chart of DAX 30 Index.
- Today in the Euro Zone, the French Consumer Price Index for Sep 2017 was released by INSEE.
- The forecast was slated for -0.1%, but the actual was lower as there was a decline of 0.2% (MoM).
The DAX 30 remained in the bullish zone and moved above the 12,800 resistance area. The upside move was strong enough to place the index above the 12,900 level as well.
A high was formed recently at 12,996. The index was just shy of the 13,000 handle and is currently consolidating gains above the 12,950 level.
On the downside, an initial support is near a short-term bullish trend line forming with support near 12,950 on the 4-hours chart. Below the trend line, the 23.6% Fib retracement level of the last wave from the 12,556 low to 12,996 high is at 12,892.
It seems like the index might continue to trade in a range above 12,900 before making an upside attempt above 13,000.
French Consumer Price Index
Today in the Euro Zone, the French Consumer Price Index for Sep 2017 was released by INSEE. The forecast was slated for a decline of 0.1% in the CPI in Sep 2017 compared with the previous month.
However, the actual result was lower than the forecast, as there was a decline of 0.2% in the CPI in Sep 2017. In terms of the yearly change, there was a rise of 1.1% in the CPI, just as the market expected and similar to the last.
Looking at the Inflation ex-tobacco index, there was a decline of 0.2% (MoM), more than the last -0.7%.
SPX 500 Index Forecast – Buy Dips?
- The SPX 500 Index is trading with a positive bias above the 2,540 level.
- There is a contracting triangle forming with current support at 2,545 on the 4-hours chart of the SPX 500 Index.
There was no stopping buyers as the SPX 500 Index broke the 2,500 handle and settled above the stated level. There was even a break of the 2,550 level and a new monthly high was formed at 2,556.
At the moment, the pair is trading in a range and forming a contracting triangle with current support at 2,545 on the 4-hours chart.
The triangle support is near the 23.6% Fib retracement level of the last wave from the 2,533 low to 2,556 high. As long as the index is above the channel support at 2,545, there are chances of more gains in the near term.
On the upside, the next target could be 2,580 and if buyers remain in control, the 2,600 level might be tested.
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