DAX Index Daily Fundamental Forecast – October 11, 2017

The DAX index continues to trade in a tight range and consolidate near the range highs as the traders wait eagerly for the break through the range highs and also through 13000 which is likely to give them the momentum to push the index to further highs in the coming days. Till then, we can expect this consolidation and ranging to continue in the index for the short term.

DAX Continues to Range

The DAX index seems to be moving in stages, taking rest and consolidating at the end of each stage. With saw one such consolidation in the 12300 region for many days and then we saw such a consolidation in the 12500 region for some days and now we are once again seeing some consolidation and ranging near the 13000 region. The consolidation in each range ends with a break higher and the DAX bulls would be hoping that this is the case this time as well.

The government formation and the alliance talks from Merkel is likely to start shortly and we believe that this would help Merkel to retain her dominant position not only within Germany but also throughout Eurozone as well and this should also lend some stability to the DAX in the medium term. This is the reason why we continue to believe in the strength of the index and believe that the index would continue to move up in the short and medium term as well.

Looking ahead to the rest of the day, we do not have any major news from Germany. But the risks in the Korean region continue to have a bearing on the global stock markets and with the FOMC meeting minutes also scheduled to be released later in the evening, we should hope to see some volatility in the markets for today.