Yahoo Finance DAX Index Price Forecast March 23, 2018, Technical Analysis
The German DAX broke down significantly during trading on Thursday, losing over 200 points. The market is currently reaching towards the €12,000 level, an area that is significant support. That support extends down to the €11,800 level, so I think that the next couple of sessions should be very important. As I record this, we continue to sell off rather drastically, based upon the possibility of the United States signing Terrace against China, which is all but assured at this point. This could start a bit of a trade war, and that has investors around the world looking to take risk off the table. The DAX will be any different, so I think that although Germany is one of the more stable economies that you can invest in, stocks in general will continue to be pummeled.
DAX Video 23.03.18
If we break down below the €11,800 level, the market will unwind further. I think that the next couple of sessions will be very important, because we could also get a bit of a bounce, saving the uptrend. Stocks look very shaky as of late, so I would be cautious and wait for some type of clarity before putting money to work. If you do feel the need to trade, I would enter with a smaller than usual position, and then add only when the market moves in your favor, as there are a lot of moving pieces currently. I do recognize the importance of €12,000 though, so a bounce in there would catch my attention.
This article was originally posted on FX Empire
