DAX Index Daily Fundamental Forecast – November 6, 2017

The DAX has been moving higher over the past week and now trades just below the 13500 region. It has been consolidating near the highs of its range over the past couple of days and it was more of the same on Friday as well as the index hovered near the 13500 region without actually breaking through it.

DAX Likely to Consolidate

The breaking through of the 13500 region would obviously be the next target of the bulls as they continue to trade along the lines of the global stock markets that have been moving higher consistently as the rate hike cycle from the major central banks continue to take shape. The market has already seen rate hikes from the Fed, the BOE and the BOC and this shift has helped to boost the stock and bond markets over the past month or so.

This kind of shift is likely to continue to take effect on the different markets over the medium term and thats why we have been advocating the continuation of the bull run in the DAX over the past few weeks. Now that the ECB has made it clear that it would be extending the QE program, the shackles have been removed from the DAX and it is now destined to freely float higher. We might see a bit of consolidation near here and then towards 13800 region as well but so far, there have not been any signs of a change in trend as yet.

Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone for the day and with the US stock indices closing steady for the day on Friday, expect a similar steady opening for the DAX today as well. As the day wears on, expect some consolidation and an attempt at the 13500 region though it remains to be seen whether the bulls would be able to achieve and hold a break through this region.