DAX Index Price Forecast January 24, 2018, Technical Analysis

The German index has pulled back slightly during the trading session on Tuesday, but overall has had more of a sideways bias. It looks as if the €13,500 level is trying to offer a bit of support, and I think it’s only a matter of time before the buyers come back into play and push this market to the upside. This is mainly because the DAX is the epicenter of money flowing into the European Union, and quite honestly the easiest way to invest in the European Union if economic expansion continues.

The 20 SMA looks rather healthy, as well as the stochastic oscillator. I think that the market will eventually break above the €13,600 level, allowing the market to continue to the upside. I still like buying dips in the DAX, as it is one of my favorite markets in the world. I believe that there is a large floor at the €13,000 level underneath, and that is the bottom of the overall trend. If we were to break down below that level, it would be a major change of attitude. It seems very unlikely, but there is also the possibility of some type of disruption coming from the negotiations between the European Union and the United Kingdom.

Longer-term, I anticipate that the market is probably going to go looking towards the €15,000 level but is going to take a while to get there. In fact, this target is something that I expect to see later this year, not later this month. I like short-term pullbacks as buying opportunities, and an opportunity to add to a core position.

DAX Video 24.01.18