DAX Index Daily Fundamental Forecast – December 27, 2017The DAX is expected to consolidate and trade in a bearish manner as the inability to form a coalition in Germany is likely to keep the markets under pressure
The DAX index was on a holiday yesterday as the long weekend for Christmas continued for much of Europe. The traders or atleast some of them are going to be back at their desks today and the DAX index would also open leading to a bit of volatility during the early part of the day which should pave the way for some slow trading later in the day.
DAX Back After Holiday
The DAX continued on its consolidation and slow trading on Friday as the lack of direction was evident. There were no fundamental drivers in a slow market and this led to some slow trading as the traders were on a holiday mode and much of the market was just chopping around with no specific direction for the traders to look forward to. It is likely that the market would continue to move in such a choppy manner for the next few days as well as the holiday mode continues for the traders till the arrival of the New Year.
It can be safely expected that we will be seeing some serious action in the market only from the second week of January and till that time, the consolidation and ranging is likely to continue in the DAX. The index is going to be under pressure in the short term and also when the markets gets back into the fullish mode in January as the formation of the coalition government in Germany continues to hang in the balance.
Looking ahead to the rest of the day, we do not have any major news from Germany and Eurozone for the day and hence we expect the consolidation to continue in the DAX with a bearish bias. No major breakout can be expected in the market anytime soon and traders should be ready for some choppy trading.