DAX Index Daily Fundamental Forecast – February 5, 2018

The DAX index crashed further on Friday as panic continued to grip the markets with the rising yields and rising value of some of the major currencies beginning to have an impact on the stock markets around the world and pushing it further. The DAX had a large drop as it finally broke through the lows of the range and this only accelerated the drop and pushed it through the 13000 region and towards the 12700 region during the course of trading on Friday.

DAX Crashes Through

There has been a lot of general talk over the last few weeks or so on how the stock indices are close to their highs and also on how many of the stock indices around the world seem to be rising more and more without much of fundamentals. In fact, we have seen the US stock indices continuing to make all time highs almost on a daily basis and this made many of the large investors jittery. That is why we have been seeing some of the central bankers and fund managers slowly begin to talk about how the stock markets were in a state of euphoria and that this made them ripe for a correction.

But on the other hand, the DAX did not have an opportunity to move too high during this period due to the impact of the rising euro and the reports that the QE would be coming to an end pretty soon. So, when the rise has not been much, the index was thoroughly exposed to  fall and that is what we saw on Friday as there was global panic in the markets which pushed the index lower.

Looking ahead to the rest of the day, the index is likely to face some choppy trading with a bearish momentum. This could see the index move towards the 12400 region in due course of time where it should find some support and this would lead to consolidation in that region in the short term.