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DAX Index Continues to Struggle for Headway

By:
Colin First
Published: May 23, 2018, 10:23 UTC

The bulls have been unable to make much headway

DAX Weekly

The DAX index continued to move higher yesterday on the back of some improved risk sentiment all across the globe but it has to be noted that the index is not out of the woods as yet and it is going to take a lot more effort for  the indices to move higher in Europe. This is a region of large selling and we do not know when it will start taking an effect once again.

DAX Likely to be Under Pressure

The bulls have been struggling a bit over the past few days, trying to break through higher on the back of some steady selling and the more time that they spend in this region, the more likely they are to fail in the coming days. It is important for the bulls to make a quick and fast break through this region to keep the investors and the traders interested in the bull run.

DAX Hourly
DAX Hourly

It has been seen many a time that the traders would lose interest if the prices do not move along with the trend in a quick manner in due course of time and then this would lead to profit taking and would also expose the market to the vagaries of the fundamentals and economic data. This is window when the economic data has been less and that fundamentals have also favored the markets, along with the sentiments, and we will have to see whether the bulls would be able to push higher.

We believe that a correction might be due, on account of profit taking and if that happens, it is likely that the DAX index would slide down to the region where it broke higher and here the index would be able to get more buyers for the next bullish leg. There is not much by way of data for today and hence we would need to watch the market closely.

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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