DAX Price Forecast February 12, 2018, Technical Analysis

The German index sold off during the trading session on Friday, reaching down towards the €12,000 level, an area that I think defines the “floor” in the market and the uptrend in general. I think that if we can bounce up here, and perhaps even break above the €12,300 level, the market could go much higher. Once we clear that level, then I think that the €12,750 level next. Any type of short-term pullback is more than likely going to be a buying opportunity to reach towards the €13,000 level and beyond. However, if we turn around and break down below the €12,000 level, I think that the market could break down significantly and reached down towards the €11,000 handle.

Ultimately, I believe that the buyers are looking for value, and therefore I think that’s what we’re seeing towards the end of the session on Friday. I will let the market break out above the previous mentioned €12,300 level before putting money to work, because I think this could be the beginning of a significant move. Ultimately, I believe that the DAX will lead the rest of Europe higher, and perhaps we are starting to see the bottom of the pullback. If we break down, then I think it could be a bit of a trapdoor opening underneath, giving us a quick move lower.

DAX Video 12.02.18