DAX Index Price Forecast January 18, 2018, Technical Analysis

The German index has been very noisy during the trading session on Wednesday, showing more volatility. I believe that longer-term, buyers are very interested in the German DAX, as it is the gateway for the European Union overall.

As people wish to get involved in the European Union, it’s likely that we will see the DAX rise. After all, the European Union seems to be doing well, and I believe at this point more money will go flowing into stocks as we continue to see a “risk on” attitude around the world. The DAX is the gateway as I said, meaning that as the first place that we go to when trying to invest in Europe. Beyond that, the €13,000 level underneath is support, so I think that it will offer plenty of buying opportunities if we do get down to that level. Currently, looks as if we are going to drop a bit, but I think that the €13,000 level will be the “floor.”

Longer-term, I anticipate that the market should then go to the €13,350 level, then perhaps to the €15,000 level longer term. I think that every time we pull back, people will be looking at short-term pullbacks as an opportunity to take advantage of value, and I think that’s probably the best way to trade this market. I would add slowly, as the volatility will continue overall. Longer-term, I think 15,000 is far too interesting of a target for traders to ignore. If we were to break down below the €13,000 level, it would of course make headlines and bring in more selling.

DAX Video 18.01.18