The DAX got hit hard on Friday as the global fears and risks continue to haunt all the stock markets of the world except for the ones in the US. The US
The DAX got hit hard on Friday as the global fears and risks continue to haunt all the stock markets of the world except for the ones in the US. The US stock markets seem to love Trump and his proposed policy changes and they have been on a raging bull run ever since he took over as the President but the same enthusiasm is not shared by the investors and the buyers in the rest of the world.
Also, as far as the DAX is concerned, it would be concerned by the local happenings and the events happening in the eurozone than by the events happening in the US and with the Greak bailout plan running into issues and with the German elections scheduled to be held in the second half of the year, the German investors have enough to worry about for the foreseeable future.
This is the reason why we have not been convinced about the break of the highs of the range to reach 12000 and that is also the reason why we have not mentioned any other target for the DAX on the upside. The breakout has been looking very weak and by the end of the week, the DAX was back into its range and this is a further cause of concern for the bulls.
We do not believe in this bull run and we believe that it may not last long and that it would only be a matter of time before the ranging and the consolidation returns and it may also eventually lead to a large correction in the DAX which the traders should watch out for. Looking ahead to today, we do not have any major news from Germany and so we can safely expect more consolidation with a slightly bullish tone but this will eventually be replaced by a bearish tone towards the second half of the week.
Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.