Yahoo Finance DAX Index Price Forecast February 21, 2018, Technical Analysis
The DAX initially fell during the trading session on Tuesday but found enough support near the €12,300 level. We rally from there, reaching towards the €12,500 level after that. If we can break above that level, then the market probably goes to the €12,750 level above, which has been resistance in the past. If we can break above there, then we continue the longer-term move to the upside. I believe that the DAX has formed a bit of a base, with the €12,000 level underneath being the “floor.”
I think that the market will continue to go higher over the longer term, but we may have to pull back a little bit to build a larger term base. If we were to break down below the €12,000 level, the market would probably unravel at that point, as it is not only horizontal support, but it is also a trend line that seems to matter on longer-term charts. I recognize that the DAX continues to lead the way for the rest of the European Union, and I believe that the European Union will continue to strengthen. Ultimately, I believe that the target for the DAX longer-term is going to be €15,000, but it’s obviously going to take a while to get there.
When you look at this chart, you can make an argument for some type of inverse head and shoulders, or perhaps an ascending triangle, either way, both of those are potential bullish signs on the hourly chart, but I recognize we are going to probably pull back several times, offering an opportunity to build a large position.
DAX Video 21.02.18
This article was originally posted on FX Empire
