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DAX Daily Fundamental Forecast – December 1, 2016

By:
Colin First
Published: Dec 1, 2016, 03:46 UTC

DAX remained largely mixed for the large part of the day yesterday, though with a bullish bias as the OPEC meeting and its outcome had an impact on the

DAX Daily Fundamental Forecast – December 1, 2016

DAX remained largely mixed for the large part of the day yesterday, though with a bullish bias as the OPEC meeting and its outcome had an impact on the markets all around the world yesterday. The lack of an agreement till a couple of days ago had kept the market on tenterhooks and kept the DAX under pressure but the OPEC members finally managed to eke out an agreement at the end yesterday and this helped to bolster the investor confidence and helped the DAX to finish higher for the day. But many of the buyers chose to stay away from the DAX for now till the range is broken and they await a clear break of 10800 for any further progress.

DAX Hourly
DAX Hourly

Risks also continue to dominate the Euro markets as the Italians vote on constitutional reforms over the coming weekend and a No vote would mean that the PM would resign and this could cause further turmoil in the euro region. This risk abounds in the euro markets and this is bound to keep the DAX under pressure over the next couple of days as the market would wait for the risks to present itself and would choose the watch what happens in Italy before committing itself.

Looking ahead to today, we do not have any economic news from the Euro region for today and so expect some more consolidation around the 10600 region for today. We suggest that our users wait on the sidelines for a few days till the DAX decides which direction it wants to move in. With the year end approaching, we expect some liquidity to dry up as days go on and so it is even better for traders to have their money firmly in their pockets till the market shows its hand so that they can invest in the right direction with confidence.

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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