DAX Index Daily Fundamental Forecast – October 9, 2017

The DAX index continues to try unsuccessfully to break through the 13000 region and it is the third day that it has failed to do so. This increases the risk of correction in the index unless the bulls make the push through as soon as they can. If they dont or if there is a delay, then it is likely that the traders get tired of pushing and might begin to take profits which could lead the index lower in the short term.

DAX Still Struggling with 13000

We believe that the trend is still up and also believe that the global markets could be entering a phase of strong uptrend and that it is only a matter of time before the DAX joins them in the move higher. The shackles seem to have been removed from the DAX in the short term and that is the reason why we saw the burst of activity which pushed the index from the 12500 region to the 13000 region where it takes some well deserved rest as of now.

We find no reason why the DAX should not be able to push higher through 13000. This region, in our opinion, is just a psychological mark and the fact that the all time highs are also located in this region is another reason for the progress to be as slow as it has been. But the fundamentals seem to be loaded in favor of the index pushing through this region and even if it does not happen within the next day or two, we expect the index to eventually push through this region in the short term.

Looking ahead to the rest of the day, we do not have any major news in the Eurozone for the day. The fact that there was no missile test in North Korea, as was originally feared, should help the DAX index to stay buoyant and it remains to be seen whether this would be enough for the bulls to push the index through 13000.