DAX Price Forecast January 26, 2018, Technical Analysis

The German index fell during the trading session on Thursday as you can see, reaching down towards the €13,250 level. That’s an area that begins a significant support down to the €13,100 level, so I think that given enough time we will bounce significantly, perhaps reaching towards the 13,600-level next. I recognize that the DAX is considered to be the leader of the European union as far as stock markets are concerned, so this market needs to show signs of strength before you can put money to work in the continent overall. I suspect that we will continue to see plenty of noise the meantime, but I do believe in the overall strength of the German economy, and of course the DAX itself. I believe that given enough time we should continue to go towards the €15,000 level. That is a call for longer-term traders, so I look at these dips as potential value.

Ultimately, the market should continue to be one that grinds its way to the upside, after all the German economy is doing quite well. I suspect that this has more to do with currency headwinds than anything else, and those moves tend to be short term in nature. I believe that the €13,000 level underneath continues to offer a significant “floor” in the market, so it’s not until we break down below there that I would be concerned. Even then, I will probably reevaluate the situation, not necessarily jump in and start selling.

DAX Video 26.01.18