DAX Index Price forecast for the week of March 5, 2018, Technical Analysis

The German index fell significantly during the week, after initially trying to rally. However, the uptrend line has offered support previously, and we are testing it right now. I believe that the weekend could be very crucial as to where we go next in the DAX, as the area is crucial. If we can bounce from here, this will have end up being a nice buying opportunity and a lot of value that people will take advantage of. However, if we break down below the uptrend line, perhaps somewhere near the €11,800 level, the market could breakdown rather significantly.

With tariffs coming out of the United States, it seems that stock markets are becoming very jittery worldwide, as fears of a trade war ways upon the minds of traders. I think that the DAX will be sensitive to this, because of the amount of trade between Germany and the United States. I think that the market breaking down from here could reach as low as the €11,000 level, perhaps even the €10,000 level after that. If we bounce, then we could be looking at a move towards the €12,750 level, and then beyond. I still believe that the market can go to €15,000, at least by the end of the year. However, we may be looking at a major correction if we get some negative headlines coming out over the weekend about other countries putting tariffs on US products. It will be interesting but be careful and wait for at least a daily candle close to tell you which direction were going to go from the trendline.

DAX Video 05.03.18