DAX Index Daily Fundamental Forecast – December 29, 2017

The DAX index continued to trade with tight consolidation as the holiday period continues to take its toll on the liquidity in the markets. The index moved lower during the course of trading yesterday but as we have been saying since the beginning of the week, not much can be read into these moves during the holiday period.

DAX Falls Below 13000

This holiday period has ensured that most of the traders would not be at their desks and the 2 successive long weekends that we are having has ensured that most of the traders would be on their holidays and hence this is a sure guarantee for low liquidity in the markets over the last week or so. This is likely to continue during the course of trading today as well as today is the last trading day of the year and the traders would also be looking forward to the long weekend.

The DAX moved lower during the course of trading yesterday as the index fell below the 13000 region for one more time and as traders, we believe that this is something that was expected to happen in the DAX as the moves on either side of 13000 is a part of consolidation and of the overall range and this should be viewed as such. We believe that this is likely to continue in the short term atleast until the second week of January when the market is likely to return to full liquidity.

Looking ahead to the rest of the day, we do not have any major fundamental or economic events during the course of the day and so we can safely expect the consolidation and the ranging to continue for the day. It is safe for the traders to stay away from the markets for now and see how the price action moves before taking a trade.