DAX Index Price Forecast March 22, 2018, Technical Analysis

The German index pulled back initially during the trading session on Wednesday, testing the €12,275 level. We bounce from there to show signs of life though, and it looks like we are going to go towards the €12,350 level, and perhaps higher than that. When I look at the charts overall, it looks as if we are consolidating between the €12,100 level underneath, and the €12,500 level above. We are sitting in the middle that range, so it’s likely that we will have a lot of volatility in this area as we are close to “fair value”, at least for the short-term perspective.

DAX Video 22.03.18

I do believe the longer-term we will go higher, and I like buying pullbacks as a potential value play. The €12,000 level underneath should be massively supportive, and I think that if we can stay above there, the market should continue to find buyers and continue to favor the upside longer term. I believe that the market should eventually go to the €12,750 level, which is the top of an even larger consolidation area. Buying the dips continues to work, but you should be patient about the markets, and you should probably start out slowly, and add if the market works out in your favor. I think that we will get a lot of volatility in this range, but I still believe the uptrend persists.