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DAX Index forecast for the week of January 2, 2018, Technical Analysis

German index traders initially tried to rally during the trading session that made up the previous week, but we have broken below the €13,000 level, which of course is a slightly bare sign. However, there is significant support just below. · FX Empire
Christopher Lewis
Updated

I think that the German index falling during the week is probably a nonissue, as volume would have been very little. Ultimately, the market should continue to see a bit of lackluster behavior in the next several sessions, but I think it’s only a matter of time before we turn around and bounce. I’m looking for a supportive candle to get involved and then push the market will above the €13,000 level, and eventually the €13,300 level, followed by the €13,500 level. Ultimately, this is a market that I have no interest in shorting, I see far too much in the way of support at various levels underneath, and I think that the longer-term traders will continue to throw money at the DAX, as the European Union looks to be strengthening in general as the ECB is stepping away from quantitative easing. They are doing it very slowly, so I think it’s only a matter of time before people start buying the DAX in reaction.

Ultimately, this is a market that I think you can add to as we go long, the uptrend looks very healthy and I think it’s only a matter of time before the buyers will be interested in trying to reach the €15,000 level, which could be possible by the end of the year. By adding slowly, you can build up a large position and profit quite nicely this year. If we were to break down below the €12,000 level though, it would be very negative and could lead to a bear market.

DAX Video 02.01.18

This article was originally posted on FX Empire

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