DAX Price Forecast December 26, 2017, Technical Analysis

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The German index did almost nothing during the trading session on Friday, as traders would have stayed away due to the upcoming holiday. Because of that, I believe that the most important thing we can do is pay attention to the larger support level just below. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:51 PM

The German index did very little during the trading session on Friday, simply chopping around and treading water. The €13,000 level underneath is massively supportive, and I think that the buyers will continue to be attracted to this market at that level. I believe that the DAX is going to have a good move to the upside eventually, but the next couple of days will probably be somewhat quiet, as traders will be focusing on holidays more than anything else. Even if we do break down below the €13,000 level, I think that the €12,800 level underneath is even more supportive. I think any bounce between here and there is a buying opportunity based upon value, and I do believe that we will continue to go much higher, perhaps reaching towards the €13,350 level again, and then eventually the €15,000 level which is my target longer term.

The noisy conditions could offer plenty of opportunities though, but I would suggest that perhaps starting out with a small position and adding as the market was in your favor is probably the best way to trade. I’m the first to admit that if we break down below the €12,800 level, things could change, and we could breakdown rather significantly at that point. Until then though, I think that it is a nice market to start getting involved in, and building a large core position as more of an investment and less of a trade. With this, I am bullish and optimistic.