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DAX Daily Fundamental Forecast – February 21, 2017

By:
Colin First
Updated: Feb 21, 2017, 07:16 UTC

The DAX did make a sincere attempt to finally break through the range as the index started the day yesterday very strongly but as the day wore on, the

DAX Daily Fundamental Forecast – February 21, 2017

The DAX did make a sincere attempt to finally break through the range as the index started the day yesterday very strongly but as the day wore on, the liquidity slowly dried up and the index came back into range though it still trades near the highs of its range and continues to threaten to finally break to the upside. Part of the reason for this failure to break above is that fact that it was a holiday in the US and so the buyers in the DAX could not get the reassurance that they usually seek when the US stock indexes also travel in the same direction.

But looking at the price action so far and also at the range of news events that are scheduled for today and the rest of the week, we believe that it is only going to be a matter of time before the DAX breaks through the range highs and achieves our short term target of 12000 and then we believe that the index will continue to grow stronger and stronger in line with the US stock indexes which have been making historic highs over the last few days. We would have expected the DAX to follow suit immediately but it hasnt done so , so far but once the breakout arrives, we believe that the DAX will then just go on the next leg of its bull run which should carry the index beyond 12000.

DAX Hourly
DAX Hourly

Looking ahead to day, we have the manufacturing and services PMI from Germany and we believe that these data are likely to cause some volatility. If they come out very strong, then that would be a good way for the bulls to push through the range highs and we may see the breakout as early as today, as a result.

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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