DAX Index Daily Fundamental Forecast – March 29, 2017

The DAX seems to be well and truly under the control of the bulls and this makes it clear that the brief trip below 11900 that we saw yesterday was more a fakeout to push those weak buyers off their trades to ensure that only the strong traders remain on board for the next leg of the bull run which seems to have well and truly begun even as we write this. The index has easily broken through 12100 and also through the previous range high at around 12150 region and it is now trading just above 12200 as of this writing.

DAX Finally Breaks Through

The index has been buoyed up by the general risk on mode in the markets which seems to have come since the US session late yesterday as the healthcare bill seems to be back on track with the Trump team reaching out to the Democrats for the support of the bill in the House. This has shown that Trump can push through some of his major changes as he gets his way ahead and this has given some confidence in the markets and has also helped to boost the healthcare stocks around the world.

This has helped the DAX index to climb above its previous range high and we believe that with this breakthrough the bulls should have enough momentum to keep pushing the index higher and higher towards our interim target of 12350 in the short term which should mark the high for the short term.

Looking ahead to today, we do not have any major news from Germany for the rest of the day but with the US stock indexes gaining ground yesterday, we can expect those effects to be seen in the DAX as well which should keep the stock well bid and buoyed up and we believe that this momentum should carry on for the rest of the day and we should close into positive territory for today in the DAX.