DAX Index Continues to Flirt with 13000

The DAX index continues to trade in a buoyant manner much like the way that it was doing the previous day as well. We saw the index break through the 13000 region for a brief while before it corrected lower during the course of the day. But the risk sentiment continues to remain high in the stock markets which should keep the index higher in the short term.

DAX Buoyant

The US stock indices ended the day yesterday on a strong note as the earnings reports began pouring in from the various companies in the US and they have been quite strong in general. We are also seeing the risk and the anticipation over the US walkout from the nuclear deal with Iran and the threat of new sanctions on Iran from the US also beginning to slowly fade away from the public memory and this has helped the traders and the investors to push the index higher.

The index continues to climb in a slow and steady manner since the beginning of the week but it is likely to face a lot of selling in this region. The bulls remain in control at this point of time but we believe that they would find it quite difficult to surmount this region at this time as the fundamentals from within Germany or the Eurozone do not seem to favor such a move at this time. The bulls would need more than just global risk factors to help them push higher and for now, there does not seem to be anything on the horizon.

Looking ahead to the rest of the day, we expect the index to begin the day on a buoyant note, following up from the way the stock indices around the world have been behaving over the last 24 hours. Towards the end of the day, we could see some profit taking as the traders head for the weekend.