DAX Index Daily Fundamental Forecast – March 21, 2017

The DAX continues to trade within a tight range and consolidate as it expects some direction from somewhere. All around the world, we see similar kind of price action in most of the stock markets as they consolidate their gains that they have made over the past 2 months. The timing for this consolidation has been a bit unfortunate as far as the DAX is concerned as it has come about just when it had started to look bullish as it broke through a long term range, a range in which it has been moving ever since the beginning of the year. But we are still quite confident that the DAX would continue to move upwards in due course of time.

DAX Likely to Move Higher

We have had some good news over the last 24 hours for the eurozone as the French debate for the Presidential elections had ended overnight and we saw that Macron is leading the opinion polls which should keep those who support the euro, happy. Germany, being a leading proponent of the eurozone concept and also being the biggest economic power within the bloc, should also be delighted by this news and so we can expect a bullish opening to the DAX for today.

We do expect the index to move beyond 12100 during the course of the day but it remains to be seen whether it would be strong enough for the bulls to push through even further and also sustain the move upwards. We continue to maintain that our short term target for the DAX is the 12350 region which we should be reaching in the short term.

Looking ahead to the rest of the day, we do not have any major economic events in the Eurozone or Germany for the rest of the day and we can expect some bullishness in the DAX but it has to be seen how far this can carry through.