DAX Index Price Forecast December 19, 2017, Technical Analysis

The German index gapped higher at the open on Monday, reaching towards the €13,325 level. I think that a pullback from here could makes sense, but I think that the gap will keep this market afloat. I believe that eventually we will start to reach towards the upside, perhaps aiming for the €13,500 level next. Longer-term, I believe that the market then goes to the €15,000 level, which is a large, round, psychologically significant level. The €13,000 level underneath is the “floor” in the market, and I don’t think that we will be able to break down below there, and the captain formed at the open on Monday of course only makes that more likely to be true.

If we do break down below the €13,000 level, that is a very negative sign, especially after we have gapped this morning. There has been a sudden shift in the attitude of German traders during the morning, so I think it’s only a matter of time before the buyers take over. Look at dips as value, and add slowly as we try to build up a larger position taken advantage of the overall strength of the marketplace. We may get a little bit less liquid over the next several sessions, as we start to get close to the Christmas vacation. This market should continue to be positive overall, and therefore I look at it as a value proposition. I suspect that longer-term traders are starting to add to their positions as well, as we have just made a fresh, new high. Going forward, I expect that 2018 will be a very positive year.

DAX Video 19.12.17