DAX Price Forecast January 3, 2018, Technical Analysis

The German index fell during the trading session on Tuesday, but found enough support near the €12,750 level to turn around. By doing so, it looks likely that the market is trying to find enough supporting pressure to push the market to the upside. That being said, I am much more comfortable buying this market if we can break above the €13,000 level again, as it would be a very positive sign, and should keep this market to the upside. I think if we break above the €13,100 level, this would be a sign that the market is going to continue to go much higher. Ultimately, the DAX tends to live and die with the overall attitude of traders towards the European Union, as the German economy is such a large part of that area.

Ultimately, on a fresh, new low I think that the DAX goes looking towards the €12,500 level, which is structural support on longer-term charts. I believe that the market below there could give way rather rapidly, perhaps sending this market to the €12,000 level. I think that the next couple of sessions will be vital as to where we go next, so pay attention to how things turn out over the next 2 or 3 days. Expect a lot of choppiness and volatility between now and signs of stability, which I think we will eventually get. That being said, patience will be needed, and you may wish to start out slowly and build your position, simply following the market.

DAX Video 03.01.18