DAX Index Price Forecast February 27, 2018, Technical Analysis

The German index rallied a bit initially on Monday, but then pulled back at the €12,600 level. We find plenty of support underneath though, so I think it’s only a matter of time before the buyers get involved and push towards the €12,750 level. The €12,500 level has offered short-term support, which of course makes sense as it is a large, round, psychologically significant number. I believe that the bottom of the overall uptrend can be found below at the €12,000 level, so it’s not until we break down below there that I am concerned about the overall health of the DAX.

Alternately, if we can break above the €12,750 level, the market then goes to the €13,000 level next. If you’ve been following me here and FX Empire, you know that I feel that the DAX will eventually go towards the €15,000 level, but it will take several months to get there, as there is so much in the way of volatility due to the conversations between London and Brussels. Remember, the DAX is essentially the “blue-chip” index for the European Union, so as it goes, so goes the EU and vice versa. I think that the market will continue to show a lot of noise, but overall it seems as if there are lot of people willing to get involved into this market, picking up these dips as value. If we were to break down below the €12,000 level, that changes everything else, perhaps sending the DAX down to €10,000.

DAX Video 27.02.18