DAX Index Daily Fundamental Forecast – June 30, 2017

The DAX bulls finally seem to have surrendered their control as the index fell through the strong support and the range low at 12550 during the course of the day yesterday. This would have been a disappointing finish for the bulls as a lot was expected out of them but they had been struggling to push through 13000 for quite some time now.

DAX Index in Trouble

In fact, in many of our forecasts, when the index was close to 13000 and struggling at the highs of the range, we had been mentioning that the longer that the index struggles at the highs of the range, without being able to break through, greater is the risk for the bulls as they risk a fall off. The bulls tend to get tired when they find that they are not able to break through higher and they start selling off in the fear that it would fall. Also, more and more traders would become bold enough to sell and this makes the resistance at the top of the range even stronger.

This is the danger that we had been highlighting over the last few days and the danger came true yesterday as the index fell through the lows of the range which had been holding for the last 2 months or so. With the support now broken, it now becomes the resistance and we should see the index slide towards the 12000 region in the short term.

Looking ahead to the rest of the day, we do not have any major economic news from Germany or the Eurozone but with the US markets having closed on a weak note yesterday, expect that weakness to continue in the European session which is then likely to cause further pain to the DAX index as it moves lower slowly and steadily.