DAX Index Price Forecast March 26, 2018, Technical Analysis

The German index fell significantly during the trading session on Friday but recovered most of the losses as it appears that the markets will continue to respect the uptrend line that I have marked on the chart. The €12,000 level of course is crucial, as it is a large, round, psychologically significant number. If we can break above the €12,000 level, the market should then reach towards the €12,400 level. I believe that the market will eventually find reason enough to go higher, and at this point I think that the market will continue to be noisy, but if we can get reason enough to go higher, the DAX will certainly be one of the first places we see buyers.

DAX Video 26.03.18

If we were to break down below the €11,700 level, then I think the market may unwind, but it is of course going to be choppy. Ultimately, this is a market that goes down to the €11,000 level over the longer term. I think that it’s going to be very noisy and choppy if we do form some type of base, but that’s, and after these massive pullbacks, as it takes a certain amount of position building and of course confidence building to turn things around. I suspect that buying above the €12,000 level is the best rate here, but at this point I think the one thing you can probably count on is a lot of volatility as the market hangs on the words of a handful of people.