DAX Index Daily Fundamental Forecast – March 20, 2017

Considering the price action that we had on Thursday, the action that we got on the DAX index on Friday should have been an encouraging sign for the bulls in this index as the index managed to close above 12000 for the week. On Thursday, we had seen that the index had tried to make a break on the upside and made it as far as 12150 which raised hopes that the bulls were finally in control but they were beaten back quite swiftly and the DAX had close lower than 12100 on that day.

DAX Looking Ominous

This kind of moves during the course of the day put a lot of doubt in the upmove and we had mentioned in our forecast on Friday that the weekly close is something that will be closely watched to see whether the move down is going to bring in a much larger correction or it is just a test from the bulls on how strong the bears are on the upside. We had also mentioned that the weekly close was going to be very important and this is the reason that the close above 12000 for the week on Friday should be an encouraging sign for the bulls as they have managed to beat any kind of selling that might have existed during that time.

It remains to be seen whether any of the events over the weekend, in which the G20 statement turned out to be a victory for Trump against major powers like China and Germany, would have any kind of an impact on the stock markets for today but if there is none, then we could see a strong opening for the DAX which would mean that the resistance around 12150 would come under pressure again.

We continue to maintain that our next target is 12350 on the index but with no news from the Eurozone or the US scheduled to be released today, we do not expect much progress in the DAX, especially as this is the first day of the week.