DAX Index Daily Fundamental Forecast – December 4, 2017

The DAX index continues to trade within a tight range over the last few days as the market awaits further developments from the political scene in Germany and also looks forward to the other developments in the rest of the markets around the globe. We expect this consolidation and ranging to be the order of the day over the short term as we enter into the final month of the year.

DAX Index Still in Range

During this period, the volatility generally dries up as the liquidity also becomes low during this period as more and more traders go out to enjoy their holiday period. As we have been saying over the last few days, the next big boost to the index should come in the form of an announcement of the coalition government in Germany but it remains to be seen whether that would happen and when it would happen as well.

Till that time, we expect the lack of major fundamentals and economic news to keep the DAX within the range and lead to a period of consolidation in the index. If the political issues get sorted out, then we should see a rally towards the 13500 region and a move beyond that would depend on the global factors and also how the fundamentals and incoming data from Germany pan out during this period. But considering that we are entering the last month of the year, we do not expect any major moves to happen in the index in the short term.

Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone and so we can expect some consolidation and good 2 way trading on either side of the 13000 region over the course of the day. We can continue to see this kind of price action for the short term.