DAX Index Daily Fundamental Forecast – February 23, 2018The index is likely to continue its consolidation over the short term
The DAX index continues to trade in a choppy manner over the past 24 hours and it looks as though this is set to continue for the short term as well. The stock markets around the world are in a state of flux as the investors are not sure whether they would need to enter at this point of time or whether they would wait for a better and lower entry.
DAX in Consolidation
The fall in the stock markets around the world has made the investors jittery and the size and the speed of the fall has also led to doubt and uncertainty. On the other hand, the fact that the fall had happened when there was not much fundamentally wrong with any of the economies around the world, should have wrecked the nerves of the investors. The reason for the fall over that period was more due to the general feeling that the markets were too high rather than any specific thing that was wrong fundamentally.
So, now the investors around the world are trying to tread a cautious path and this is the reason why we are likely to see a lot of consolidation and ranging over the last few days and this is likely to last for the short term for this reason. We do not see the DAX moving higher anytime soon and that is why we have been insisting that the index is likely to stay within a consolidation mode and that any further push ahead should be sold into by the investors which will only add to the pressure on the index.
Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone and so we can safely expect the consolidation to continue. It is likely to be a bit buoyed as the risk sentiment has picked up over the last 24 hours but this is unlikely to bring in any major moves.