DAX Index Daily Fundamental Forecast – March 23, 2017

The DAX continues to flounder as it has been doing since the beginning of the week. We had mentioned in our forecast yesterday that the index was likely to start the day weakly and continue lower towards the close of the day and it happened so over the past 24 hours. The DAX index opened lower and moved below 11900 during the course of the day and though it recovered towards the end of the day, largely due to the recover in the US stock indexes, it continues to stay below 11950 and that is the key region going forward.

DAX Continues to be Bearish

The DAX index is likely to stay bearish in the short term as the momentum seems to have been lost by the bulls and the index is back into the range that it was in earlier. For many days, the bulls tried to push the index towards our second target of 12350 but over the last 2 days, we have seen an increase in risks around the world and also an increase in fears over Trump and his policies and this has led to the pullout of funds from the stock markets and these funds have been getting invested into safer assets like gold. This is one of the prime reasons why the stock market indexes all across the world have been falling.

The DAX index is expected to open a bit strongly for the day as the US stock indexes closed with gains yesterday but this rise should be tempered with the fears and risks surrounding the world due to the terrorists attacks in the UK yesterday and also due to the voting for the repeal of Obamacare in the US later on today. A repeal of the health plan could hit the healthcare industry due to the uncertainty in the situation surrounding healthcare and this could in turn hit the stock markets as well.