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DAX Index Daily Fundamental Forecast – March 17, 2017

By:
Colin First
Published: Mar 17, 2017, 04:44 UTC

We had mentioned in our forecast yesterday that the conditions were now ideal for the bulls to make their move and push the DAX index beyond 12100 and

DAX Index Daily Fundamental Forecast – March 17, 2017

We had mentioned in our forecast yesterday that the conditions were now ideal for the bulls to make their move and push the DAX index beyond 12100 and towards our next target of 12350 and for a brief while yesterday, it did look as though this was the case as the index opened very strong and moved through 12100 and as high as 12175 before some large scale selling set in and it pushed the index below 12100 once again.

DAX Bulls Yet to Seize Control

Looking at the overall close for the day in the DAX, the index closed pretty weakly which is a sad situation considering how the bulls were just about beginning to take control of the index. Now the daily close was almost same as the open which is a bearish sign and we have to wait and see how the market reacts when it opens for the day. If there is a follow through of the selling from late yesterday, then we could see the index move back below 12000 where it should find some support just ahead of the 11950 mark for now.

DAX Hourly
DAX Hourly

But if the bulls manage to hang on and keep the index above 12000 for the first half of the day, then they could be in some serious business towards the second half. A close above 12100 should point to a control of the bulls and should make the path towards 12350 easier. The global stock markets are in a consolidation phase after the Fed rate hike and this is seen to be rubbing off on the DAX as well.

Looking ahead to today, we do not have any major news from the Eurozone or Germany for today and hence watch out for the close today. A close above 11950 should keep the bull run in play and a close above 12100 should show that the bulls are in full control.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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