DAX Index Price Forecast February 20, 2018, Technical Analysis
The German index drifted a little bit lower during the trading session on Monday as traders came back from the weekend. However, I think that the market has plenty of support underneath, and I think that it’s only a matter of time before the buyers return. The €12,000 level underneath is the “floor” in the uptrend as far as I can see, so therefore I don’t have any interest in shorting this market. I do believe that the DAX will lead the way higher, perhaps for not only the European Union, but maybe even the rest of the world. The €12,750 level above is resistance, but I think we can break above there over the next couple of sessions, if not couple of weeks. I believe these dips are offering value that most traders are willing to take advantage of, so I believe that this is a “buy on the dips” situation, but you should probably do so slowly as markets continue to be very noisy.
Your capital is at risk
Eventually, I think that we will have more of a “risk on” attitude, and I think that we will eventually find reason enough to not only break above the €12,750 level, but also towards the €13,000 level. I have no interest in shorting, at least not until we break down below the €12,000 level. If we did, then I think that the market could unwind rather quickly, perhaps down to the €10,000 level over the next several weeks on the move. Ultimately, I think that is the least likely of scenarios though.