DAX Index Daily Fundamental Forecast – November 13, 2017

The DAX index continued to trade in a weak manner during the course of the day on Friday on account of weak global cues, especially from the US. This can also be viewed as a correction of the last move higher from the DAX and if that is the case, then we should see the index finding support in this region and moving slowly higher in due course of time.

Index Moves Lower on Global Cues

This is something that remains to be seen as we continue to believe that the index is in an uptrend and hence any move lower should be met with a lot of buying which would in turn lead to a bounce in the index. On Friday, the index continued to move lower as the US stock indices also dropped as the tax cut plan for the corporates in the US was delayed by a year. This was a setback for the US corporates and this led the US stock indices lower.

In a measure of how closely the global stock markets are tied to each other, we the fall in the US stock indices has led to a kind of panic selling in the other major stock markets around the world. In the absence of any major economic or fundamental news over the last week or so, the index has been exposed to correction and selling and this was evident on Friday as well as the index moved lower and once again found some buying support in the 13100 region.

Looking ahead to the rest of the day, we do not have any major news from the Eurozone or Germany which is something that is expected on the first day of the week when the traders return back to their desks and they try and sort out their trading positions for the week. Expect some consolidation in the 13100 region for the rest of the day as we expect a breakout higher later in the week.