DAX Index Price Forecast February 19, 2018, Technical Analysis

Germany had a slightly positive session on Friday, gaining almost 1%. The market has been grinding higher for several days, and it now looks as if we have found some type of bottom. · FX Empire

Christopher Lewis

Updated Fri, Feb 16, 2018, 11:44 PM

The German index drifted higher during the session on Friday, showing signs of forming a bottom on the longer-term charts. The €12,000 level underneath should be a nice floor, and if we can stay above there it is likely that we will continue to go higher. If we can break above the €12,750 level, that should send the market much higher. I believe that the market will continue to remain positive overall, but I do recognize that the market could turn around and a breakdown below the €12,000 level would be catastrophic. I believe that eventually we will continue to go much higher though, all things being equal. I have a longer-term target of €15,000 for later this year, but I believe that it may be more of a grind than originally thought, as we have seen such a significant selloff recently.

Ultimately, the market should continue to find buyers, but I also recognize that the market had gotten ahead of itself early this year, and it’s likely that the selloff was healthy, as it gives us the ability to shake out a lot of the “hot money” and get back to normal investing. I believe that buying on dips will continue to be the best way going forward to take advantage of the DAX overall, and I think that eventually if we can continue to be somewhat stable and have somewhat of a “risk on” attitude around the world, the DAX should lead the way for many other indices. If we break down below the €12,000 level, that could coincide with a lot of selling off and other indices also.