DAX Price Forecast February 12, 2018, Technical Analysis

German traders sold off during the session on Friday, but as you can see we started to see buyers come back in at the €12,000 level. This is an area that will be very important, because it is a massive floor in the market. By bouncing from here, we give the market some hope that we may turn around and bounce from here. I believe that the €12,000 level defines the trend in general. · FX Empire

Christopher Lewis

Updated Fri, Feb 9, 2018, 9:37 PM

The German index sold off during the trading session on Friday, reaching down towards the €12,000 level, an area that I think defines the “floor” in the market and the uptrend in general. I think that if we can bounce up here, and perhaps even break above the €12,300 level, the market could go much higher. Once we clear that level, then I think that the €12,750 level next. Any type of short-term pullback is more than likely going to be a buying opportunity to reach towards the €13,000 level and beyond. However, if we turn around and break down below the €12,000 level, I think that the market could break down significantly and reached down towards the €11,000 handle.

Ultimately, I believe that the buyers are looking for value, and therefore I think that’s what we’re seeing towards the end of the session on Friday. I will let the market break out above the previous mentioned €12,300 level before putting money to work, because I think this could be the beginning of a significant move. Ultimately, I believe that the DAX will lead the rest of Europe higher, and perhaps we are starting to see the bottom of the pullback. If we break down, then I think it could be a bit of a trapdoor opening underneath, giving us a quick move lower.