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DAX Index Price Forecast February 20, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 20, 2018, 05:28 UTC

The German index drifted a little bit lower during the trading session on Monday, as we continue to bounce around. I think that the market could go looking towards the €12,300 for support, but ultimately, I do think that the buyers return.

Dax daily chart, February 20, 2018

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.

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.

DAX Video 20.02.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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