DAX Index Daily Fundamental Forecast – October 17, 2017

The DAX index continues to try and break through the 13000 region and it has finally managed to close above the 13000 region yesterday on the back of improving investor sentiment. Time is really running out for the bulls to make a break of this and push higher and get back to the business of letting this bull run continue but so far, the signs have not been very convincing. Even the close for the day yesterday has not been very convincing.

DAX Continues Consolidation

The index continues to look weak and we are not seeing the run that we had expected to see once the breakout happens through the 13000 region which means that the bulls are not still out of the woods as yet and it is quite likely that the index may choose to go lower once again today and in the short term as well. As we wait for the index to choose which way it wants to go, it has to be noted that many of the global stock indexes, especially the ones in the US, are tearing higher and the DAX index is clearly lagging behind.

This could prove to be quite bad for the index in the medium term as when the other global stock markets begin their correction, then the index would come under pressure once again and this could cut short the move higher. This is why we have been saying that the bulls need to establish control as soon as they can so that they would be able to push the index higher as soon as they possibly can.

Looking ahead to the rest of the day, we do not have any major news apart from the ZEW economic sentiment from Germany which is unlikely to have too much impact on the index. We expect the consolidation to continue for the day.