DAX Index Daily Fundamental Forecast – August 24, 2017

The DAX index consolidated and ranged, similar to the case of many other stock markets around the world, as they wait for the Jackson Hole meeting and the speeches from the central bank leaders after that. The markets do not want to commit themselves in either direction ahead of such a crucial meeting and that is why we are seeing the markets being less volatile and having less liquidity since the beginning of the week.

DAX Continues Choppiness

Of course, the markets have not yet come to a standstill but the moves have been very directionless and choppy as we see the index move up one day and then move down the very next day and so on and this has made trading quite difficult. Traders would be well advised to wait till the dust settles down and then look at the situation and then take the trade in the right direction rather than get carried away by the moves which are basically fake outs to clear out the trades in either direction.

Yesterday, we had the Eurozone PMI data which came in stronger than expected and this once again raised fears that the tapering might be near. The fact that tapering is going to happen soon is something that cannot be denied but the timeline for the same is not yet clear and the ECB has also not yet given any kind of indication on that and that is why we are seeing the markets being wary and so susceptible to these kind of news which indicates the jitters that the market  is in.

Looking ahead to the rest of the day, we do not have any major news from Germany for the rest of the day and so we can safely expect some consolidation and ranging to happen with the prices in 12000 and 12350 price regions acting as the extremes of the range.