Yahoo Finance DAX Index Price Forecast February 23, 2018, Technical Analysis
The German index went sideways initially on Thursday, but then rallied again towards the €12,500 level, an area that has been important over the last week or so. I believe that we will eventually break above there, and that the momentum will build up enough to leave that in the rearview mirror. I think that once we do, we then need to worry about the €12,750 level above, which will also be resistive. A break above that level then clears the way to the €13,000 level. I think that the market continues to be very noisy, but I do favor the upside. I believe that recently we have formed a bit of a “bottom” in the market near the €12,000 level again, so value hunters will continue to be attracted. If worldwide markets continue to rally, the DAX obviously will as well, as it is the “blue-chip index” of the European Union.
If we were to roll over and break down below the €12,000 level, that would be very negative and send this market much lower. However, I don’t think that’s going to happen without the rest of the world tumbling as well. In other words, it will be a very obvious trade to start shorting stocks in general, and the DAX will be any different. I do believe in the upward momentum though, and I think the given enough time we are looking towards the €15,000 level, all yet much further down the road and perhaps late in the year.
DAX Video 23.02.18
This article was originally posted on FX Empire
