DAX Index Daily Fundamental Forecast – June 20, 2017

We are seeing a risk on mood in the market over the last few days and the way that the stock markets have been buoyant and moving higher is an example of that. This is best exemplified by the US stock markets which moved higher yesterday to make yet another all time highs. Compared to that, the European stock markets have been generally subdued with the DAX being caught with a tight 300 point range ever since it made an all time high few weeks back.

DAX Turning Bullish

The DAX has not been able to make much progress since then as the investors had expected the DAX to build on the momentum and crack through 13000 quickly. It has not happened so far but to the credit of the bulls, they have not let the index fall as well. They have managed to keep it pretty much buoyed which has helped to sustain the interest of the investors and this has helped the buyers to push up the index as and when they wanted to.

This was the case yesterday as well. We had pointed out in our forecast yesterday that the time was nearing for the bulls to finally make a stand and push the index higher else it would become too late for them as more and more investors would start losing interest if they do not get enough returns on their investments. This seems to have served as a reminder to them as they used the risk on mode in the European markets, buoyed by the clear victory of Macron in the local French elections, to push the DAX back above 12900 and it has closed the day in a very bullish manner.

Looking ahead to the rest of the day, we do not have any major news from Germany but with the strong close in the US markets yesterday, we should expect a strong opening in the DAX index for today which will be an opportunity to push through 13000.