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DAX Daily Fundamental Forecast – October 27, 2016

By:
Colin First
Updated: Oct 27, 2016, 07:25 UTC

The German DAX continued to consolidate the gains that it had made over the past few days and it was still looking for some impetus from somewhere to push

DAX Daily Fundamental Forecast – October 27, 2016

The German DAX continued to consolidate the gains that it had made over the past few days and it was still looking for some impetus from somewhere to push it further upwards.The index does look poised to move even further higher but for that, it needs support from data and the earnings releases that are being made by various large companies in different parts of the world. Today morning, we saw the release of earnings data from Nintendo which was less than what was expected and this disappointed the Asian markets. We could probably see the effect of that when the DAX opens later on today and we expect the DAX to continue its consolidation when it opens but with a slightly bearish bias.

DAX Hourly
DAX Hourly

The DAX was weakened yesterday by weakening commodity prices which poses a risk to global economy as it affects a lot of countries like Australia and New Zealand which depend on commodity prices to sustain their economy. We saw gold, silver and oil decline due to general USD strength and also due to lowering demand from the different parts of the world and this affected the stock markets. The weak earnings from Apple also dampened spirits in the stock markets and increased fear that more companies would miss their earnings targets in the days to come.

Looking ahead to today, there is no major news from the German or the Euro region that is scheduled to be released but we will continue to get earnings data releases from major companies in Germany and the US and it would be advisable for users to be wary of these releases and ensure that they trade carefully. The DAX has crossed through 10700 which it has been trying to do for many weeks and it has managed to stay afloat above 10700 for the last 2-3 days which augurs well for the bulls. Any approach towards 10700 should be viewed as an opportunity to go long on the index with a stop loss below 10700.

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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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