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DAX Index Daily Fundamental Forecast – June 19, 2017

By:
Colin First
Published: Jun 19, 2017, 05:19 UTC

The DAX closed almost unchanged for the week last Friday after having done a down trip as well as an uptrip during the course of last week. For a brief

DAX Index Daily Fundamental Forecast – June 19, 2017

The DAX closed almost unchanged for the week last Friday after having done a down trip as well as an uptrip during the course of last week. For a brief while last week, it did appear as though the index might finally be able to break through the top of the range and move through to 13000 and beyond but it soon corrected itself lower as the Fed hiked the rates and also gave a bullish outlook as far as the rest of the rate hikes this year are concerned.

DAX Unable to Break Through

That the DAX is under the bullish grip is clear for everyone to see but what should concern the bulls is the fact that they have not been able to push through higher over the last few weeks. The corrections have been shallow and they have always been met with some strong buying which has led to a bounce in the index but on the other hand, the region around 12900 continues to serve as a strong resistance and has not allowed the index to push through that despite quite a few attempts over the last few weeks.

DAX Hourly
DAX Hourly

As more and more such attempts fail, it is likely that more and more sell orders begin to be loaded into that region by the bears in the hope that the future attempts would also fail and what this does is that it is makes it an even more difficult region to break through for the buyers. And once the buyers get exhausted, it is only a matter of time before the index falls through. This is the danger that the bulls are exposing themselves to, in the medium term unless and until they break through the top of the range quickly.

Looking ahead to the rest of the day, we do not have any major economic news from Germany and as has been the case over the last few weeks, we can safely expect some consolidation with a slightly bullish bias.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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