DAX Index Price Forecast February 15, 2018, Technical Analysis

The German index went sideways initially during the trading session on Wednesday but found a bit of selling pressure in the middle of the day. We found enough buyers at the €12,000 level to jump in again, and rally significantly. Ultimately, it looks as if were going to challenge the €12,500 level, and then eventually the €12,750 level. I am bullish of the DAX, and I believe that value hunters will continue to flock to this market and buy dips as they occur. I have no interest in shorting this market, least not until we break down below the €12,000 level, something that doesn’t look very likely to happen.

If we were to break down below the €12,000 level, it could unwind the DAX trade to the €10,000 level, but I think that is unlikely, as it would take a significant amount of pressure and downward momentum to make that move. I think that short-term pullbacks offer value the people will be using to add to their position, as the DAX should continue to represent the best of the European Union, an area that should do quite well. Longer-term, I still believe that the DAX goes looking towards the €15,000 level, but that’s obviously something that will take a long time to accomplish, as we are far from there. This is a market that should continue to find a bit of a “risk on” vibe, just as the rest of the stock markets around the world seem to be doing quite well.

DAX Video 15.02.18