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DAX Price forecast for the week of January 8, 2018, Technical Analysis

January 06
15:06 2018

The German index initially fell during the trading week, but found enough support near the €12,750 level to turn around and rally significantly. This market looks very bullish, and I think that we have found enough buying pressure underneath to continue to push this market towards the €13,500 level, and then eventually the €15,000 level. I think that the markets will continue to be volatile, but the DAX of course is very central to the European stock markets, as it is the main driver of economic volatility in the EU. I think that as the EU continues to strengthen overall, the DAX of course will favor the upside. I also recognize that the trend has been very strong for some time now, and that of course hasn’t changed. We been positive for 2 years, I see nothing on this chart the changes that concept.

Longer-term, I suspect that buying short-term pullbacks in small increments to build up a larger core position is the best way to trade this market, as the volatility can be used in your favor at that point. I suspect you will have to be patient for these moves, but keeping the position size small and then adding what it proves itself to work out in your favor, you can benefit from what has been a gradual slog higher. It is not until we break down below the €12,500 level that I would be concerned about the uptrend that we are currently experiencing.

DAX Video 08.01.18

This article was originally posted on FX Empire

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