DAX Index Daily Fundamental Forecast – Sep 6, 2017

The DAX index traded in a strong manner during the first half of the day but weaker as it moved towards the end of the day. But still the overall movements were well within the range that we have been mentioning over the last few weeks or so. The DAX has been consolidating within the 12000 to 12350 price regions over the last few weeks and as we have been saying over the last few days, this sort of consolidation is expected to continue in the short term.

DAX Still in Consolidation

Yesterday, the index managed to recover as the risks began to recede. The index had moved lower during the early part of the week as the risks and the tension in the Korean region continued to exist and this pushed all the stock markets lower all across the world. This seemed to affect the DAX as well and hence the index had moved lower. But over the last 24 hours, the risks had receded and this helped the stock markets all across Europe to recover and this helped the DAX as well.

But this recovery was only short lived as it moved back lower towards the end of the day as the pressure and the tension continued to lie underneath the markets. We dont think that the risks are going to disappear anytime soon in the stock markets as North Korea is likely to threaten the US and its neighbours with its testing of missiles and whenever that happens, the funds are pushed out of the stock markets and the markets drop lower.

Looking ahead to the rest of the day, expect the consolidation and ranging to continue for today and for the short term as well and this is what has been happening over the last few weeks. We do not expect this to change anytime soon.