DAX Price of forecast for the week of February 12, 2018, Technical Analysis

The German index fell significantly during the week, reaching down towards the €12,000 level. That’s an area that has been very important in the past, and it must hold for the uptrend to continue. If it does not, the market should break down. · FX Empire

Christopher Lewis

Updated Fri, Feb 9, 2018, 10:07 PM

The German index has broken down significantly over the last couple of weeks, reaching down towards the €12,000 level. Ultimately, if we break down below the bottom of the range for the week, this market should continue to go much lower. However, towards the end of the day on Friday we are starting to see buyers come back into the fold, and we could be looking at a lot of value hunting in this market. Part of this might be due to the US dollar strengthening, which helps German exports.

At this point, I think longer-term traders will be paying a lot of attention to the €12,000 level, and if we can stay above a, then buying is possible. Obviously, you should do it with a bit of caution, as it could cause a lot of noise. However, if we were to break down at this point I think it would be easy to see this market go down to the €10,800 level next. Quite frankly, stock markets around the world have been moving in sync, and I think that will continue to be the case. Currently, I think that we are due for a bounce, so I would not be surprised to see that happen. If we can break above the €12,750 level, the market could then go as high as €13,600 next. I prefer to buy the DAX, but I need to see a bit of stabilization before I do so.