DAX Index Daily Fundamental Forecast – February 26, 2018

The DAX index continued its recovery and closed the day on Friday on a strong note. As we have been saying over the last several days, with the lack of fundamentals and economic data locally, it is now at the mercy of the international markets and the risk sentiment globally which pushes and pulls the index in either direction without much of control.

DAX Rebounds Slightly

We saw more of the same on Friday as the index continued to push above the 12500 region for some more time despite their being no fundamental push for the index. The stock markets in the US finished the day on a higher note and this has since helped the DAX to move higher and we believe that this will continue the push on Monday as the momentum is likely to last for the long term. Even though the index has been moving higher, the investors and traders have been treading on a slow path.

They are not yet very convinced about the move higher despite the strong economic data that we have been seeing from the Eurozone and Germany over the past few months. This adds the pressure on the ECB to taper the QE as soon as possible and this has only added to the pressure on the European stock markets during this period. This is what we are seeing in the markets now and this is what is going to continue in the index for the short term. We believe that what we are seeing is just a bounce which could reverse at any point of time.

Looking ahead to the rest of the day, we are unlikely to see too much of action as we head towards the end of the month. The option expiries are all already done with and we should see the larger investors looking to establish their positions in the next few days, for the coming month.