DAX Index Daily Fundamental Forecast – January 10, 2018

The DAX corrected lower during the course of trading yesterday but the fall so far has been small and insignificant and hence there is nothing much for the traders to fret over, at this point of time. The DAX continues to trade above the 13300 region at the time of writing and it looks as though the index would continue in a buoyant manner for the short term.

DAX Takes a Breather

The markets had a bit of a rest during the course of trading yesterday as the raging bull market in the DAX seemed to have come to a short stop for now. This is viewed as more of a correction in the bull trend rather than a total stop and reversal and hence we believe that it is quite likely that the index would reverse on advent of any good fundamental news or on the pickup in the risk sentiment once again once the current period of correction gets over in the global stock markets.

A fundamental push could come in the stock markets if and when the Germany Chancellor Merkel is able to successfully push through with her coalition talks. It is expected that a breakthrough would arrive anytime within the next week or so and if and when that happens, we are likely to see the resumption of the bull trend in the DAX. With many of the global stock markets pushing to all time highs, we would do well to safely expect the same to happen in the DAX as well if and when the bull trend resumes in a large manner. If the talks fail, on the other hand, then we are likely to see the move reverse and wouldnt be surprised if the index falls through 13000.

Looking ahead to the rest of the day, it is likely to be another slow day on the calendar and with the lack of major economic and fundamental drivers, we are likely to see another slow day of trading which is likely to go on in the markets for today. This is likely to lead to some choppy trading for the day.