DAX Price Forecast January 8, 2018, Technical Analysis

The German index shot straight up in the air during the session on Friday, breaking above the €13,300 level. This is a very bullish sign, and I think that the market should continue to go higher. As the market continues to show signs of strength, I believe it gives us an idea that the market is continue the longer-term uptrend. I think that the market will eventually go looking towards the €13,500 level, but I also recognize that the €13,000 level underneath is the “floor” in the overall uptrend. I think that we will have pullbacks eventually, but she should be looking at those pullbacks as value. Those value propositions are what you need to look for to take advantage of a market that I think has plenty of bullish momentum left in it.

If we were to somehow break down over €300, I think that would be a massive negative move waiting to happen, but I think that the odds of this happening fall somewhere in the 10% category. I believe that the volatility continues to be something that you can use in your favor, but I also recognize that adding slowly might be the best way to go on dips, as it allows you to build up a huge position. The markets should offer one of the better opportunities this year, so ultimately I remain “long only.”

DAX Video 08.01.18