Yahoo Finance DAX Price Forecast February 9, 2018, Technical Analysis
The German index has rolled over rather significantly during the trading session on Thursday, reaching down towards the €12,250 level again. This is an area that buyers stepped in previously, so it’ll be interesting to see if they could do so again. On the hourly chart, we have pierced that level, and it looks as if the buyers are trying to make it stand as I record this. However, there is even more support below at the €12,000 level, which I see as the bottom of the uptrend. If we were to break down below there, things could get ugly rather quickly.
If we bounce from here, I think that we will probably need to consolidate a bit between the €12,250 level on the bottom, and the €12,650 level on the top. Eventually, I would anticipate the buyers will return as there will be value hunters out there looking at these pullbacks as an opportunity. There are concerns about the bond market though, as interest rates are rising, then typically makes buying bonds a much more attractive option to buying stocks. As most of what’s going on right now, so it’ll be interesting to see how this plays out. Regardless of what you do, I would anticipate that small position sizing is necessary, and it’s not until we break above the 12,007 and €50 level that I would be willing to buy for a longer-term move. At that point, I would even be adding to my position.
DAX Video 09.02.18
This article was originally posted on FX Empire
