DAX Index Daily Fundamental Forecast – February 13, 2018

The DAX index continued its consolidation and recovery over the last 24 hours and it appears as though it is in line with the rest of the stock markets all around the globe. After a large fall that was seen during the first half of last week, the index has been trying to stage a rebound and though it has been able to stop the fall in the index, the bulls have not been able to turn it around as yet.

DAX Rises by Over 1%

The index rose by more than 1% during the course of the day yesterday and this was due to the improvement in the risk sentiment around the world. There were no fundamental or economic data drivers yesterday, as it was the first day of the week when the data generally dries up, and hence any kind of rise would be welcomed with both hands by the bulls. But considering the extent of the fall, it is going to take quite some time for a full recovery to be possible.

Yesterday, the index made a slow climb above the 12300 region during the day and though this would have given heart to the bulls, the pace of the rise has been quite slow and it occurred on a slow day as well. This means that the risk of the downtrend continuing still exists in the DAX markets and the traders need to take care of that as well. The trend has not changed as yet and what we are seeing could just be a correction of the downtrend. We expect the index to continue to remain under pressure for the short term as the threat of the QE end is likely to haunt the European markets.

Looking ahead to the rest of the day, we do not have any major economic data from Germany or the rest of the Eurozone and hence, it is safe to say that there would be some bullish consolidation in the index for the timebeing.