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DAX Price Forecast January 22, 2018, Technical Analysis

Christopher Lewis
Updated
The German index rallied significantly during the day on Friday, reaching towards the €13,450 level. The impulsive move has been very bullish, and I think we are now going to test significant resistance above.

The German index has rallied significantly during the session on Friday, reaching towards the €13,450 level, and perhaps getting ready to threaten the vital €13,500 level. That’s an area that if we can break above, would signify the next leg higher. I think that pullbacks are buying opportunities, and I don’t have any interest in shorting this market, least not anytime soon. We have made a “higher high”, albeit just barely. I recognize that the EUR/USD pair has been rallying as of late, but this is due to economic strength in the European Union, so therefore I think it won’t be as detrimental to German exports as a simple pricing equation.

DAX continues to be a “buy the dips” scenario, and I would add every time we get a short-term pullback. I believe that the longer-term target is the €15,000 level, and we would get that sometime this summer. I also recognize the €13,000 level as the “floor” in the market, and therefore if we were to break down below there I think things could get interesting. The most certainly get ugly below the €12,800 level, but it would take a lot to turn things around to break down below there currently. I think that the market is one that will show plenty of opportunity for those who are long minded, and of course patient. Volatility offers opportunity, so trade the CFD market in small increments, building up a larger position going forward, so that you can take advantage of the obvious uptrend that we have been in for so long.

DAX Video 22.01.18

This article was originally posted on FX Empire

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