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DAX Daily Fundamental Forecast – January 19, 2017

By:
Colin First
Published: Jan 19, 2017, 03:42 UTC

The DAX took a cue from the global markets and began its next leg of the bull run that it is currently in. We saw a healthy correction in the trend last

DAX Daily Fundamental Forecast – January 19, 2017

The DAX took a cue from the global markets and began its next leg of the bull run that it is currently in. We saw a healthy correction in the trend last week when the index finally made a visit to fill the gap from the beginning of the year, near 11400 and after that, it was only a matter of time before the index began its next leg and this is what we have been mentioning in our forecasts as well.

The German economy has proved to be very strong among all the economies in the eurozone and the economic data from the country continues to prove that on a daily basis. As we had mentioned, their economy is strongly based on manufacturing and any such economy is bound to remain strong even in times of trouble. That is why we have been seeing Germany continue to throw up strong data and this is also reflected in the strength of the DAX index. We believe that the DAX has a short term target of 12000 and it is only a matter of time before the target is reached. Long term investors need to keep in mind the German elections that are scheduled to be held in the middle of the year and though Merkel is expected to win again, in these times of great changes, nothing can be ruled out.

DAX Hourly
DAX Hourly

Looking ahead to today, we have the ECB rate statement and the press conference that follows soon after and though nothing substantial is expected from the ECB, as it has already clearly spelt out the it would be in the markets for the whole of this year, this is an event that the traders need to keep in mind to guard against some volatility. Any correction in the index should be viewed as an opportunity to go long.

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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