DAX Price Forecast January 9, 2018, Technical Analysis

The German index gapped higher at the open on Monday, as we came back from the weekend break. The market has been very bullish lately, so it makes sense that we could continue to see buyers jumping in, but these pullbacks that happen, such as the one during the session on Monday, offer value that I think attract a lot of attention. I suspect it will be noisy, but at the end of the day it’s obvious that the DAX has been one of the favored indices in the European Union, and by extension the world. I think that given enough time, we will go looking towards the €15,000 level, but that obviously is a very long-term target.

Every time we pull back, I believe traders will look at it as potential value, and what has been one of the better performers. I also recognize that the EUR/USD pair has been rallying, and is potentially ready to break out to the upside. That could put a bit of downward pressure on the DAX, but overall I think that is bullish for the EU in general, so eventually the stock traders will fall in line. Expect noisy conditions, but over the longer term I don’t see anything structurally suggesting that we are going to start falling over. In fact, it’s not until we break down below the €12,000 level that I am concerned about the uptrend, which is a significant drop from here.

DAX Video 09.01.18