DAX Index Price Forecast January 23, 2018, Technical Analysis

The German index pulled back a little bit during the day on Monday but found enough support at the €13,400 region to turn around and rally again. I see the €13,500 level above as resistance, but mainly because of the large, round, psychological nature of the number, and not because of anything else. I believe that every time we pull back, it’s likely that we will see buyers jumping into this market, based upon the value that the DAX is presently offering. Remember, the DAX is the first place where traders put money to work in the European Union, and stock markets in general are doing well around the world.

Beyond that, the European Union seems to be strengthening economically, and of course with the German economy being over 80% of the value of the European Union, it makes sense that Germany is the first place money gets thrown at. Beyond that, if you trade other indices in the European Union, you need to pay attention to the DAX, as the other indices tend to follow it. Eventually, we will break above the €13,500 level, and that should send the market to the €15,000 level longer-term, which has been my target for some time. Otherwise, if we were to break down, I think the market should find plenty of support at various levels down to the current floor in the market, which I see as the €13,000 handle.

DAX Video 23.01.18