DAX Price Forecast January 30, 2018, Technical Analysis

The German index went sideways during the day on Monday, dancing above the €13,200 level. The market seems to be very supportive in that area, and I think that we could get a bit of a bounce from here. The €13,600 level above would be the target, and eventually I think we can break above there and go much higher. If we break down below the €13,200 level, the market probably goes looking towards the €13,000 level underneath. I suspect there is a massive amount of support underneath at that level, but if we break down below there, the market could unwind down to the €12,750 level rather quickly.

Longer-term, I believe that the market should continue to go to the €15,000 level, and I think that every time we pull back in the DAX it offers an opportunity to pick up value, as I believe that the DAX continues to be one of the better performers overall, and certainly the first place that buyers will come when trying to get involved in the European Union. The German economy is 80% of the EU in general, so I think that this will be the first place that we see a rally, which would of course be followed by several other indices in the EU. Even if you don’t trade the DAX, you need to pay attention to it as it gives us an idea of stock markets worldwide and their overall trajectory.

DAX Video 30.01.18