DAX Daily Fundamental Forecast – February 20, 2017

The DAX continues to trade weakly, as it has been doing so for many weeks now. Though the index trades near the highs of the range, it has been unable to make any significant progress in its bull run and this type of consolidation is likely to wear out the bulls ever so slowly as time goes on and on and the index fails to push through higher. This is why the bulls need to do something to get the bull run back on track and the first thing that they need to do in order to achieve this is to push the index through the highs of the range, bringing about a breakout so that the other buyers and investors can then take over and push this bull run along.

The world markets have been on a consolidation mode contrary to what has been happening in the US stock indexes. The US stock indexes have been making record highs over the last couple of weeks and they seem good to do more and this is in line with their anticipation of business growth in US based on the spending policy of Trump and his team and also based on the protectionist policy of his, which is likely to increase jobs in the US. But it is this exact policy which has led to a period of uncertainty among the other major economies of the world as they believe that such a policy could affect world trade balance and also bring in a period of large risks and “Their Country First” kind of policies among many countries.

Looking ahead to today, we do not have any major economic news from Germany or the Eurozone for today and so we can expect some more consolidation in the DAX. A lot of news is expected to flow in during the rest of the week which could lead to some volatility and maybe a break of range as well !