Advertisement
Advertisement

DAX Index Daily Fundamental Forecast – April 28, 2017

By:
Colin First
Published: Apr 28, 2017, 08:14 UTC

The DAX index continues to consolidate near the range highs and it is to the credit of the bulls that they have managed to hold the index near its highs

DAX Index Daily Fundamental Forecast – April 28, 2017

The DAX index continues to consolidate near the range highs and it is to the credit of the bulls that they have managed to hold the index near its highs despite the various developments across the world over the last few days. This shows that the index continues to be quite strong and it is in a clearly bullish grip. This is the same thing that we had mentioned in our forecasts when the index was in the 12100 region and following that, we had this huge 300 point move this week which has been a result of the general risk on mode in the markets this week.

DAX Likely to Continue in Consolidation Mode

This risk on mode has been a result of the French elections results over the last weekend and we believe that the effects of that has begun to slowly wear off as the market now begins to focus on other matters. We have Trump continuing to put pressure on the risk on trade with his daily statements on trade with his neighbours and across the world as well and we have also been hearing his dangerous views how what risk that North Korea poses to the world and all this is beginning to build up into something substantial.

DAX Hourly
DAX Hourly

Though Trump has managed to keep the markets under balance with his tax cut announcements over the last few days, we believe that it will be only a matter of time before the fears and risks begin to outweigh the positive tone and when this happens, we should see some correction in the DAX.

Looking ahead to the rest of the day, we do not have any major news from Germany for the day and so we can safely expect the consolidation to continue. Those who are not already in the DAX trade can wait for a correction towards the 12350 region before they start loading their longs.

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.

Did you find this article useful?

Advertisement