DAX Index Daily Fundamental Forecast – October 4, 2017

The DAX index continues to make headway but is facing a lot of resistance in the 13000 region, which is natural and which is something that we have been mentioning in our forecasts as well. The index seems to have finally made up its mind on moving higher, after a few weeks of consolidation, and it looks as though it is only a matter of time before it breaks through.

DAX Trying to Break Through 13000

The 13000 mark is only a psychological figure and it is also very close to the all time highs and that is why we are seeing a delay in the break through this region. But the global stock markets have all been on a bullish run for some time now and it is time for the DAX index to play catch up and that is what it is trying to do right now. The talk of QE tapering is now hanging above it and though it has forgotten about it for now, it is likely to come back anytime.

That is why the market is always on the lookout for any progress on that front. For today, we have a speech from Draghi which the traders would be looking forward to see whether he hints anything on the tapering. If he does, then it is likely to affect the index as it would mean that the free flow of funds from the ECB into the stock markets would be stopped gradually. On the other hand, we believe that we are in a long term uptrend in the stock markets in general and hence, the DAX should also follow suit.

Looking ahead to the rest of the day, apart from the speech from Draghi, we do not have any other economic data from Germany or the Eurozone. We expect the index to break through the 13000 region at any point of time which should give added momentum to the bull run.