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DAX Index Price Forecast March 16, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Mar 16, 2018, 05:56 UTC

The German index has been bullish during the trading session on Thursday, gaining 0.90% by the time I recorded this. The market looks as if it is ready to continue going higher, but I do see a little bit of resistance just above.

Dax daily chart, March 16, 2018

The German index has rallied significantly during the trading session on Thursday, showing signs of support at the €12,200 level. I believe that the bottom of the uptrend is at the €12,000 level, so if we can stay above there is only a matter of time before the buyers come back. If we reached towards the €12,600 level, we would be targeted, if not allow the market to go to the €13,000 level. I think every time we pull back, it’s likely that we will find buying opportunities on short-term charts.

I think given enough time we could go to the €15,000 level, and that remains my longer-term target. I think that investors are aiming for that level, and if the economic numbers in the European Union can pick up a bit, that might be the reason to start buying the DAX. Recently, the numbers haven’t been that hot, but the EUR/USD pair has gained slowly, so it hasn’t been hurting German exports as much as people would have been concerned about. I think that the noise in this market will continue, because it will continue in all stock markets around the world as we have so many geopolitical concerns. If we do break down to a fresh, new low, then I think the market breaks down towards the €10,000 level, and I would become a “sell the rallies” trader. Until then, I continue to buy these pullbacks with small positions, adding as the market proves me correct.

DAX Video 16.03.18


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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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