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DAX Index Price Forecast February 23, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 23, 2018, 04:55 UTC

The German index rallied during the trading session on Thursday, reaching towards the €12,500 level. This is an area that has been important over the last several sessions, but if we can break above there I think that the momentum will carry us forward.

Dax daily chart, February 23, 2018

The German index went sideways initially on Thursday, but then rallied again towards the €12,500 level, an area that has been important over the last week or so. I believe that we will eventually break above there, and that the momentum will build up enough to leave that in the rearview mirror. I think that once we do, we then need to worry about the €12,750 level above, which will also be resistive. A break above that level then clears the way to the €13,000 level. I think that the market continues to be very noisy, but I do favor the upside. I believe that recently we have formed a bit of a “bottom” in the market near the €12,000 level again, so value hunters will continue to be attracted. If worldwide markets continue to rally, the DAX obviously will as well, as it is the “blue-chip index” of the European Union.

If we were to roll over and break down below the €12,000 level, that would be very negative and send this market much lower. However, I don’t think that’s going to happen without the rest of the world tumbling as well. In other words, it will be a very obvious trade to start shorting stocks in general, and the DAX will be any different. I do believe in the upward momentum though, and I think the given enough time we are looking towards the €15,000 level, all yet much further down the road and perhaps late in the year.

DAX Video 23.02.18

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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