DAX Price Forecast February 6, 2018, Technical Analysis

Global stock sold off during the trading session on Monday, and of course Germany was never going to be any different. I think that the market is going to go looking towards the €12,500 level underneath, as it is a large, round, psychologically significant number. However, it should be noted that the DAX did much better than many of the other indices that I follow. As a record this, we are down .6%, hardly a negative move to be worried about. If we can break above the 12,007 and €50 level, the market should then go to the €12,850 level, followed by €13,000.

The German markets are bearish, but they are essentially “less bearish” than many of the other ones around the world, showing the underlying strength of the DAX. I think that we will find quite a bit of buying pressure near the €12,500 level, so on a supportive daily candle I would be more than willing to go long. If we do break down below the €12,500 level, then the next target would be €12,000 which has a significant amount of importance when it comes to the longer-term charts. Once we break down below that level, the entire uptrend is finally over. I doubt that happens though, there is so much in the way of bullishness longer-term, and of course the economic numbers all look good. A lot of what we’re seeing now I believe is a market unwinding from an overbought condition. These corrections are healthy, and quite often lead to opportunity for those who are willing to take advantage of it. Right now, I would let the market flush out the week hands.

DAX Video 06.02.18