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DAX Daily Fundamental Forecast – October 21, 2016

By:
Colin First
Published: Oct 21, 2016, 05:09 UTC

Yesterday, we had the break through 10700 that the bulls have been looking for for the past few weeks. But we believe that the clear break has not yet

DAX Daily Fundamental Forecast – October 21, 2016

Yesterday, we had the break through 10700 that the bulls have been looking for for the past few weeks. But we believe that the clear break has not yet been confirmed and we await the confirmation today. Do note that this is a region of strong resistance and hence any buy in the region should be made very carefully after looking at various parameters and only after we have confirmed that the break signals further upmove.

The index opened higher yesterday and continued to move upwards on a general risk on sentiment throughout the european markets and the upmove was fueled further by comments from Draghi about the European economy and the tapering of QE which is something that is likely to start soon but the timelines and the actual end to the QE is not known as yet. The DAX index went as far high as 10748 thus breaking through the monthly high as the index made some serious gains across the board.

DAX Daily
DAX Daily

As said earlier, a clean break of 10700-750 region would signal the resumption of the uptrend which would then target 10940 and the final target would be the close from last November which was 11350.

Looking ahead to today, we do not have much news scheduled to be released from the euro region and considering the fact that the SPX yesterday and the Asian markets today have been slightly bearish, we expect a similar kind of opening in the DAX today which is likely to be slightly bearish and hence we do not expect a clear break of the resistance today as well and it would serve well for traders to keep an eye on the price action on the index today to see if the region will hold.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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