DAX Daily Fundamental Forecast – February 22, 2017

The DAX has finally managed to break through the range and make some strong progress towards our first target of 12000. We had been anticipating this breakout and though the ranging and consolidation had been going on for several weeks, we were confident of the breakout and were watching the price action closely so that we could time the breakout in a much better manner.

Towards the end of last week, we had felt that the moves that were getting built up and the economic events that were lined up this week pointed towards the distinct possibility of a push through the highs of this range by the index. This is the reason why we had mentioned the same thing in our weekly and daily forecasts and has also said that it was high time that the bulls made their move or else things could turn out to be too late. And true to our word, we found the DAX push through the highs of the range yesterday.

DAX Looks at 12000 and Beyond

It trades just below our target of 12000 which should not only be a formality and with the continuing good economic data from the Eurozone and Germany in particular, there is no reason why this next leg of the uptrend not last even further. We have the German Ifo Business Climate data that will be released during the London session and that data will be key to keep this momentum in the DAX going on.

As for the other news events of the day, the biggie would be the FOMC meeting minutes where the Fed is expected to give out a hawkish minutes in line with what the Fed members have been saying publicly in the different forums of late. If this happens, we could expect the stock markets to be even more thrilled than what they are now and this could keep the bull run burning further for the stock markets around the world, including the DAX.