DAX Index Price Forecast February 13, 2018, Technical Analysis

German traders bought the DAX during the trading session on Monday, shooting above the €12,300 level. Ultimately, it looks as if we are grinding sideways, and we are ready to continue going to the upside. At this point, I anticipate that the market is going to go looking towards the €12,600 level, perhaps even higher than that to the €12,750 level. Ultimately, this is a market that I think will find that the €12,000 level has been a bit of a floor and could be the bottom of the significant pullback that we have been waiting on.

Longer-term, I anticipate that the DAX will reach towards the highs again, as stock markets around the world begin to recover. The DAX of course has been bashed by higher interest rates in the bond markets, just as the other indices have. If we are above the €12,000 level, the market should continue to be bullish in general, offering opportunities to go long on small pullbacks. Longer-term, I anticipate that we will see fresh, new highs later this year and the DAX, as Germany is the bellwether of the European Union. This will be especially true if we continue to see interest rates rise in the United States, as the DAX will be a nice alternative to volatility in America. If we did breakdown below the €12,000 level, I would have to start rethinking the entire situation, as we could find ourselves testing the €10,000 level rather quickly. Until then, I’m bullish.

DAX Video 13.02.18