DAX Index Price Forecast February 14, 2018, Technical Analysis

German traders were reasonably quiet during the trading session on Tuesday, after bouncing significantly from the €12,000 level previously. I believe that the market should continue to grind sideways in general and should continue to find plenty of support at the €12,000 level to keep the uptrend going. The €12,750 level above should be targeted, as it is a resistance barrier. I think we will eventually break above there, but we may have to grind a while to build up the necessary confidence and momentum to do so. Once we do break above that level, the market should become more of a “buy-and-hold” situation, sending this market towards the €13,000 level next, and then the €13,500 level after that.

Longer-term, I do believe in the value of the DAX, and I do believe that traders will return. The DAX is essentially a proxy for the European Union, and if the European Union continues to strengthen overall, I believe that the DAX will attract a lot of money. Ultimately, the market will be volatile, but I believe that those dips should continue to be buying opportunities, assuming that we can stay above the €12,000 level. If we were to break down below there, the market probably breaks down rather significantly as I see the €12,000 level as a “floor” in the overall uptrend. I still believe that the DAX will go looking towards the €15,000 level, but that’s obviously a longer-term call.

DAX Video 14.02.18