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DAX Index Daily Fundamental Forecast – August 10, 2017
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The DAX index corrected lower over the last 24 hours, broadly in line with the rest of the stock markets all around the world. The markets were spooked by
The DAX index corrected lower over the last 24 hours, broadly in line with the rest of the stock markets all around the world. The markets were spooked by the war of words between North Korea and the US and the threat of strikes from both sides has led to a lot of selling in the stock markets which has led to a correction in the DAX index.
DAX Moves Lower on Global Cues
This correction saw the DAX lower by about 1% at one point of time as the index crashed through the 12200 region and also through the 12100 for a short while as it threatened to break through the lows of the range. But it was met with a lot of buying in this region which helped the index to recover later in the day and now it sits just below 12200 as of this writing. But with the tensions continuing to mount and with the rest of the stock markets, including those in the US, reacting by moving lower, it remains to be seen how long the lows of the range can hold.
If the index does break through the 12100 region, then we should have another round of support and buying in the 12000 region just due to the fact that it is a round figure. We expect a lower opening for the day for the DAX and it remains to be seen whether the market would be able to shrug off the threats and the tension and move higher and make a stand, during the course of the day. Even if the index does bounce, as we have been repeatedly saying over the past couple of weeks, it will only be an opportunity to sell higher.
Looking at the rest of the day, we do not have any major news from Germany for today and so the direction for the day would depend a great deal on how the markets continue to react to the geopolitical tensions. If the DAX index does manage to shrug it off, then we might see another visit to the highs of the range around the 12300 mark.
About the Author
Colin Firstauthor
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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