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DAX Index Forecast March 13, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Mar 13, 2018, 06:18 UTC

The German index rallied initially during the day, but then pulled back to return to where we started. As I record this, it looks as if the buyers are coming back, continuing the grind higher.

Dax daily chart, March 13, 2018

The German index initially rallied a right away on Monday, reaching towards the €12,480 level, before pulling back to reach towards the opening price again. As a record this, we are starting to show signs of support in that area again, so I think that the buyers will more than likely continue to go back into the market and push to the upside. I believe that the €12,500 level above will be targeted, and then eventually the €12,600 level. Given enough time, I anticipate that this market probably goes as high as €13,000 over the next several sessions.

DAX Video 13.03.18

This is not to say that we won’t get the occasional pull back, we most certainly will. However, I look at those pullbacks as value just waiting to happen, and therefore am more than willing to buy them at the first signs of a bounce. I think that it might be choppy, but we most certainly have a bit of an uptrend in channel going on. The €12,000 level should continue to be a “floor” in the market, and therefore where I recognize the bottom of the uptrend. If we were to break down below there, that would of course change a lot of things when it comes to this pair. Until then, I believe it is a “long only” market, and I believe that most traders out there are starting look at it in the same light. Global stock markets in general are starting to show signs of strength again, and of course with the DAX being the “blue-chip index” of the European Union, it won’t be any different here.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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