DAX Index Daily Fundamental Forecast – September 29, 2017

The DAX index continued to trade in a strong manner as we had mentioned in our forecast yesterday. The index broke through the 12700 region and managed to stay above it which opens up the possibility of further gains in the index. As we had mentioned in our forecast, the index has shrugged off the German elections results and now seeks to join the global stock markets in their uptrend.

DAX Regains Bullishness

Over the last few weeks, the DAX had been left behind in the race to the top as the index was weighed down by the prospect of German elections and the corresponding results. The QE tapering talk also weighed on the index and it seemed to be a difficult situation. Even the German elections and its completion did not seem to provide the necessary impetus to the index as the elections did not give enough majority for Merkel to form a government of her own.

But over the last couple of days, there have been increasing signs of a workable coalition being formed in Germany and there are also signs of closer cooperation between France and Germany which has raised hopes of better times for the German economy. This has helped the index to break through new ground as it trades well above the 12700 region as of this writing and looks bullish at this point.

Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone and with this being the last day of the month, we expect some consolidation in the index with a bullish bias. This is likely to continue in the short term.