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DAX Price Forecast February 26, 2018, Technical Analysis

Christopher Lewis
Updated
The German index did very little during the trading session after the initial surge on Friday. This is mainly because we are hanging around a major area of noise in the form of the €12,500 handle.

The German index has rallied a bit during the day on Friday but struggled to break above the €12,500 level with any sense of gusto. I think that the market will eventually find a way to break out above there and reach towards the €12,750 level, the next resistance barrier. I believe that short-term pullbacks offer buying opportunities, as the DAX should continue to be a major influence on where other indices in the European Union move, as well as the American market.

I look at the €12,000 level as an area that is the bottom of the uptrend, and I think that the market is one that you should look at as a “buy only” market, least until we break down below the €12,000 level, something that I don’t see happening anytime soon. If we were to do that, then I think the DAX could unwind rather rapidly. Otherwise, I think it’s only a matter of time before we see buyers jump in and take advantage of any type of pullback that appears, as it gives us an opportunity to pick up value in what is one of the leaders in stalwarts in the world markets.

I anticipate that adding slowly to a core position might be the best way to go, giving you an opportunity to build up a large core position. Most funds seem to be positive on the stock market right now, and this of course extends to Germany. I have no interest in shorting until we break down below €12,000.

DAX Video 26.02.18

This article was originally posted on FX Empire

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