DAX Index Price Forecast January 25, 2018, Technical Analysis

The German index initially went sideways during the trading session on Wednesday, but then broke down significantly. We reached towards the €13,400 level underneath, an area that has been important in the past. We could get a bounce from here, and I fully anticipate that we will see it. However, I also recognize that this is a market that may remain a bit volatile, because we are starting to see a significant pressure in the form of currency headwinds. If we can break out to a fresh, new high, the market is likely to go to the €14,000 level, and then eventually the €15,000 level. I do like the idea of buying dips, and this dip could be a nice opportunity. I also recognize that longer-term we are very positive, so that should end up taking over eventually.

I believe that the €13,000 level underneath is the “floor” in the market, so it’s not until we break down below there that I become concerned. Stock markets have rallied continuingly around the world for months, and I think that continues to be the case. Add slowly, but certainly it seems as if buying is the only thing we can do. Ultimately, I still have a target of €15,000, and I don’t see anything on this chart that tells me it isn’t going to happen. Expect noise, but quite frankly I think you can only look at this from a positive light. Selling is all but impossible at this point.

DAX Video 25.01.18