DAX Index Daily Fundamental Forecast – June 22, 2017

The DAX fell yesterday in line with the rest of the major stock markets in Europe and also in other parts of the world. The fall began with the Asian stock markets on general risk off mood and also due to the fact that the oil prices were dropping off more and more on supply concerns. This then spread to the European stock markets as well, when they opened and this pushed the markets lower and the DAX fell as well.

DAX Back Within Range

This was no surprise as the signs were clear on the previous day itself with the DAX trying to make a break to the upside and reaching all time highs at 12950 during the course of the day but only to face a lot of selling and falling back into range by the end of the day. This was followed up yesterday as the index fell further and broke through 12800 during the course of the day and finished the day lower than 12800.

We have been mentioning that the DAX bulls have been finding it increasingly difficult of late, to push through the range highs as they have always been met with a lot of selling especially near the 13000 mark. With the bulls protecting the index from falling through the previous all time highs at around the 12550 region, we have been seeing the DAX index trading within a tight range and consolidating for several weeks now with no hope of moving much on either side.

Looking ahead to the rest of the day, we do not have any major news from Germany or from the Eurozone but with the US stock markets consolidating yesterday, we can expect a slow start to the markets when it opens for the day and we should see some more consolidation and ranging for today.