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DAX Index Daily Fundamental Forecast – October 31, 2017

By:
Colin First
Published: Oct 31, 2017, 08:14 UTC

The DAX continues to trade in a strong and steady manner during the course of the last 24 hours as the European stock markets have been clearly buoyed by

DAX Tuesday

The DAX continues to trade in a strong and steady manner during the course of the last 24 hours as the European stock markets have been clearly buoyed by the good news from the ECB and also from Catalonia. The ECB decision to extend the QE beyond the expectations of the market has served to keep the stock markets in an uptrend and this is something that we have been harping on for the past few weeks.

DAX Likely to Stay High

We have said that the global stock markets are in a large cycle of bullish uptrend and that it was only a matter of time before the European stock markets also joined them. The DAX has been struggling to push higher due to the reason of the tapering announced by the ECB which had led the markets to believe that the tapering would be done and dusted in a very quick and swift manner. The fact that the ECB decided to continue with QE for more time has ensured the availability of funds in the market for that much more time.

DAX Hourly
DAX Hourly

Also, for the last couple of weeks, the events in Catalonia had also rocked the markets with uncertainty gripping that region. But with the independence calls fading to the background, we are seeing the Spain stock markets beginning to recover and this has helped the DAX also to gain some support. This is likely to continue in the short term as we next focus on the target of 13500.

Looking ahead to the rest of the day, we do not have any major economic news from Germany or any other part of the Eurozone for today and hence we can safely expect some more consolidation and ranging as the bulls prepare to launch themselves into the next bullish leg higher.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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