DAX Index Daily Fundamental Forecast – June 23, 2017

The DAX index spent most of the day in a consolidation and ranging mode with not much of movement either way. This was in line with most of the European markets which spent the day yesterday in a tight range as most of the drivers of the market were unavailable and it seemed as though as the traders had decided to take a break and spend their time in a holiday or something. This was the case with most of the other markets as well where the volatility was pretty low.

DAX Likely to Continue Consolidation

It has been a difficult time for the DAX traders as they should have got tired of all the ranging that has been going on in the index for so long now. The index has been unable to break through on either side as the support at the 12550 region and the resistance that seems to be protecting the 13000 region have proved to be simply too strong for the traders to break through. This has led to a long period of consolidation in the index with no signs of a breakout.

We are also approaching the time period when the market would start looking at elections that are going to be held in Germany in September. Though Merkel has been having quite a lead at this point of time, it is natural for the market to get jittery as we approach the election time and this is then likely to bring in some bearishness into the markets. So the time is running out for the bulls to push the index through 13000 and as this situation prolongs, we are likely to see the buyers get tired of this ranging and begin to give up.

Looking ahead to the rest of the day, we do not have any major news from Germany except for the CPI data and in line with the rest of the markets, we expect the consolidation and ranging with a bearish bias to continue in the DAX for today.