DAX Index Daily Fundamental Forecast – October 19, 2017

The DAX index seems to have finally got the break that it needed as it had a large move higher during the course of trading yesterday and has since corrected lower to the place where the breakout began. These are all signs of a good breakout that is likely to hold steam and it is now up to the bulls to ensure that this breakout is not wasted.

DAX Finally Makes the Move

There does not seem to be any major fundamental news that has driven this breakout but this move higher has been in the works for the past week or so ever since the index moved through the 13000 region for the first time. We had been saying that it was important for the DAX bulls to make the move soon, before the speculators got tired and started selling, and that it was also important for the bulls to make the move stick so that they can continue the move higher. The steadiness in the dollar and the prospect that the QE tapering would be delayed to a greater extent and is likely to happen in a very slow and steady manner has helped to buoy the European stock markets.

The fact that the US stock indices have been tearing higher over the last few days has also had its influence on the DAX index and a combination of these events has helped the bulls to finally make a break for it and move higher, in line with the promise that the index has been showing over the last couple of weeks. The bulls would hope that they can make this move stick for the short and medium term as well.

Looking ahead to the rest of the day, there is no economic data or news from Germany or the Eurozone for the rest of the day. The market open for the DAX index is likely to be crucial as some profit taking towards the end of the day yesterday has caused the index to move back to the lows of the breakout region and it is important that the index manages to maintain this support so that it can move higher on its next bullish leg.