DAX Price Forecast January 31, 2018, Technical Analysis

The German index rolled over a bit during the trading session on Tuesday, reaching down towards the 13,250 level. There is a significant amount of noise in this general vicinity, so I think it’s only a matter of time before we rally towards the 13,500 level. The DAX has been very bullish for some time, and this pullback could be offering a nice buying opportunity for those of you who are a little bit longer-term minded. If we break down below the 13,000 level though, that would be very negative and could send this market down to the 12,800 level.

Rallies continue to be the longer-term attitude of this market, and I think that these pullbacks offer value that we can take advantage of as the German economy continues to strengthen. The market will more than likely go looking towards the 15,000 level longer term, but it is going to take a long time to get there. This is a target that I have for the DAX by the end of the year, so obviously these pullbacks will occur. These pullbacks should be thought of as value, but I recognize that we will need to see volume enter the market with a green candle to take advantage of this. The EUR/USD pair has been strong as of late, and that tends to put downward pressure on the DAX, as it makes German exports more expensive. Ultimately, the fundamentals in this market place should send the DAX higher.

DAX Video 31.01.18