DAX Index Daily Fundamental Forecast – September 12, 2017

The DAX index shot higher yesterday as the stock markets around the world rebounded as the risk events, which were priced into the markets over the course of the last week, did not come true and this proved to be a relief for the investors and traders who decided to push the markets in a relief rally. This helped the DAX to break through the important resistance region at 12350 and move higher.

DAX Shoots Higher as Markets Rebound

We had mentioned in our forecast yesterday that with nothing happening in North Korea over the weekend, the markets are likely to open stronger and that we are likely to see a gap up in the DAX and that is what we saw yesterday as the index opened above 12350 with a large gap and continued to move higher during the course of the day. We had also mentioned that over the last few weeks, the index had been packed into a tight range between 12000 and 12350 and that it was going to be difficult to break through this range.

But the fact that the opening of the index itself was higher than the resistance proved to be useful as the bulls were able to carry on the bullish opening for the rest of the day as well which helped to push the index through 12400 region and close the day just short of the 12500 region. The stock markets are likely to continue their rebound today as well and we could well see the index moving through the 12500 region and moving towards the 12600 region during the course of the day.

For the rest of the day, we do not have any major news from Germany or the Eurozone but with the risks clearly receding, we are likely to see some buoyancy continue to exist in the stock markets. But the gap below the 12350 region would be a target that the bears are likely to eye in the short term and hence we could see some consolidation today as the bulls and bears battle it out.