DAX Price Forecast December 18, 2017, Technical Analysis

The German index of course went sideways initially during the trading session on Friday, testing the €13,000 level for support. We broke down to the upside, and clear the €13,100 level, showing signs of strength yet again. I believe that the DAX is trying to form a bit of a base, so that we can continue the overall bullish pressure. Longer-term, I suspect that we are going to go looking towards the €13,250 level above. Pullbacks offer value, and the DAX of course has been very strong over the last several months.

Ultimately, this is a market that I think continues to be very bullish, especially considering that the EU is represented most stringently buying the DAX, as Germany as 85% of the economy. I have no interest in shorting this market, I believe that the bullish pressure is there for a reason, as the EU has been strengthening, and of course it looks as if the European Central Bank, although getting ready to cut back on quantitative easing, still remains a very accommodative for monetary policy, and that of course helps stocks as well. If exports pick up out of Germany, this could continue to be a very bullish market that allows us to take advantage of the dips and add to a core position, something that I have been doing most of the year. In general, I suspect that the €15,000 level will be the target next year, as we have seen the DAX continue to drive towards large, round, psychologically significant numbers. If we were to break down below the €12,500 level, that would be extraordinarily bearish and could send the market into a tailspin.

DAX Video 18.12.17