DAX Index Price forecast for the week of February 19, 2018, Technical Analysis

The German index rallied during the week, as we continue to see the market trying to hang on to the uptrend. The positive candle was of course encouraging, but there is still some work to do. I think that the buyers have returned, but this will be a bit of a grind more than anything else. · FX Empire

Christopher Lewis

Updated Sat, Feb 17, 2018, 12:47 AM

The German index has rallied a bit during the week, breaking above the €12,400 level. The market looks likely to continue to try to reach towards the €12,750 level above, and perhaps even higher than that. If we can break above the €12,750 level should send this market much higher, perhaps to the €13,500 level. Ultimately, this is a market that I think that will find value hunters every time we pull back, but I also recognize that the €12,000 level is crucial. If we break down below that level, it’s likely that we will fall much further, perhaps as low as €10,000.

I believe that longer-term we might be looking towards the €15,000 level, but it’s going to take a while to get there. It’s very difficult to imagine that we will get there as quickly as we initially look like we were going to the beginning of the year, so I think that it’s likely we will find plenty of struggles along the way, but it’s also very likely that longer-term investors are willing to pick up value if we can stay above the €12,000 level. I don’t know if we can break above the €15,000 level, as it is a significant barrier, but the year certainly should see an attempt at that level as we have been so bullish for so long. In fact, you can make an argument for an uptrend line being touched over the last couple of weeks, confirming the uptrend.