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DAX Fundamental Forecast – September 29, 2016

By:
Colin First

The DAX began the day yesterday on a bullish note and promptly broke through the resistance at 10420 and went as high as 10500 on general market feel-good

DAX Fundamental Forecast – September 29, 2016

The DAX began the day yesterday on a bullish note and promptly broke through the resistance at 10420 and went as high as 10500 on general market feel-good factor. There was no major news in the Euro or German regions but the DAX carried on from the other stock markets and opened bullishly. Then came signs that the oil producers may not come to an agreement in their meeting in Algiers and then came the speeches from Yellen and Draghi which did not reveal much about the monetary policy of either the US or the Euro region. This dampened the general mood in the markets and the DAX fell back to its support at 10420 again.

Overnight came the surprising news of an agreement being reached between the oil producers to cut oil production and increase oil prices and this caused a general risk-on sentiment across all markets, both FX and stocks. This helped DAX to bounce off the support at 10420 and again go through 10500 and it sits at 10514, the top of the range from yesterday, as we write this.

DAX Hourly
DAX Hourly

We expect the bullish tone to be maintained when the DAX opens today and we may even see a challenge of the highs at 10680 which would be crucial for a continuance of this bull run. 10680 would be key and if it breaks, then we have the year’s highs at 10760 which could be a good target for the bulls. On the below side, we have support at 10420. There is no major news to be released from the Euro region for today but we expect the risk-on sentiment to continue to keep the stock markets and the FX market buoyed for today. As usual, trade the extremes of the ranges and do not get swayed by the euphoria. Markets are usually much smarter than we are and we have to give that to them sometimes. Trade safe and Trade carefully.

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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