DAX Index Daily Fundamental Forecast – June 21, 2017

The DAX index has been try very hard over the last few weeks to push through the range highs and reach 13000 but just like how the euro has been struggling to reach 1.13 and it has been a case of so near and yet so far, the DAX also has been unable to push through towards 13000 and beyond despite the best efforts of the bulls so far. The longer the bulls keep failing at doing this, the more is the danger of them failing to push through at all and then they expose themselves to the risk of a fall.

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Over the last couple of days, we have seen a general risk on mood in the markets and this has been reflected in the stock markets around the world trading very strongly. It has been the same case with the DAX as well which has seen some strong trading since the beginning of the week but it continues to fail at the final hurdle. Over the last couple of days, we have seen it rise above 12900 during both days and we have also seen it fail there and fall towards the range on both of these days showing that there is some very strong selling which is protecting the 13000 region.

Yesterday, we saw the DAX rise above the 12950 region for the first time on the back of strong risk on sentiment and with the US stock indexes also closing higher the previous day, the index looked set to break through the 13000 mark yesterday. But again, strong selling came in and with no economic or fundamental drivers to keep the bullish leg running, the index corrected lower and fell into range and closed the day just above 12800 and the bulls have all the work to do once again, if they want to push the DAX through the 13000 mark and beyond.

Looking ahead to the rest of the day, we do not have any major news from Germany for the day and with the stock markets around the world trading in a subdued manner over the last 24 hours, we expect a moderate to bearish opening to the DAX and some consolidation with a weak bias.