DAX Index Daily Fundamental Forecast – September 13, 2017

The DAX index, after a couple of days of strong showing, has slowed down and has now begun to consolidate and range within a tight price region. Though the bull run has slowed down, what should give confidence to the bulls is the fact that it has managed to stay above the important resistance region around 12350 and continues to trade strongly and comfortably above 12500 as of this writing.

DAX Consolidates and Ranges

The stock markets in the US picked up steam once again yesterday and they began to move up in a strong manner over the US session yesterday and hence it was natural that the other stock markets in Asia and Europe also picked it up and ran with the baton today. This is what we have been seeing in the DAX index over the past 2 days and this is what we will be seeing for today as well. The worries about tapering seem to have vanished for now as the market focuses on the economic news and it is also clear that the tapering is likely to be delayed in the short term.

Draghi made it clear last week that the ECB would decide the length and breadth of the tapering based on the incoming data and hence, this leaves the door open for tapering to happen and for the QE to continue on a small scale for some time longer as well. This has helped to support the European stock indexes and the same is seen in the DAX as well.

Looking ahead to the rest of the day, we do not have any major economic news from the Eurozone or Germany for the day and so we can safely expect the consolidation and the ranging to continue in the short term. The region around 12350 should lend some good support going forward though it remains to be seen how long the stock markets would be able to hold up.