DAX Price forecast for the week of December 18, 2017, Technical Analysis

A break above the top of the hammer for the week should send this market towards the €13,500 level after that, which was the recent high. I think this pullback is necessary, as we have seen a lot of resistance in the region of €13,000 previously, and now it is proven itself to be supportive. This is a classical dip in an uptrend, so therefore I am a buyer of the DAX and believe that we will not only reach the €13,500 level, but much higher levels. During the year 2018, I fully anticipate seeing the DAX run to the €15,000 level next. It might get pullbacks from time to time, but those are value propositions that you should be taken advantage of.

In fact, it’s not until we break down below the €12,500 level that I would be concerned, and it’s not until we break down below the €12,000 level that I would consider the uptrend broken. Overall, I think that the DAX will continue to do quite well, mainly because the European Union seems to be doing better as well. Remember, Germany is 85% of the European economy, so obviously money flows into the DAX when people want to invest in the EU. In general, I believe that longer-term investors like the DAX, so therefore you can look at it as an investment more than anything else. Yes, you can short this market occasionally on the short-term charts, but is much less stressful to fight that type of war than to simply hold on to a strong uptrend.

DAX Video 18.12.17