Advertisement
Advertisement

DAX Daily Fundamental Forecast – December 07, 2016

By:
Colin First
Published: Dec 7, 2016, 03:16 UTC

The DAX continued the momentum that it had gained on Monday by pushing through large selling and posting range highs at 10840 which will be key for its

DAX Daily Fundamental Forecast – December 07, 2016

The DAX continued the momentum that it had gained on Monday by pushing through large selling and posting range highs at 10840 which will be key for its further progress as far as the bulls are concerned.

We have been mentioning in many of our forecasts that a clear break and retest of the previous highs in the region of 10800 is key to see whether this bullish run will continue and we are now in that territory and it will be interesting to see how the DAX opens and trades today. Based on the action yesterday, we should have a strong opening in the day but it remains to be seen whether that strength is sustained and it is pushed through 10900 or whether the sellers take over control and push it back down into the range again. We have been in this region a couple of times before and both times, the bounce has failed and the DAX had been pushed into the ranges again but this time, the move seems different and seems to have a lot of force and backed by some strong fundamentals like improving German data and also the strengthening of the euro, atleast for the short term.

DAX Hourly
DAX Hourly

Looking ahead to today, we have the German Industrial Production data coming out during the London session and apart from that, we do not have any other economic data from the euro region. The production data will tell us how the manufacturing sector is faring and considering the fact that the foundation of the German economy has always been manufacturing, we should expect some strong numbers from that and this will again help to further boost the index. Traders would be well advised to wait for a break and retest of this region before jumping in with their longs rather than jump the gun and buy at the highs.

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.

Did you find this article useful?

Advertisement