DAX Index Daily Fundamental Forecast – September 8, 2017

The DAX index continues to trade in a strong manner despite the global risks that seems to be abound in the markets at this point of time. The index seems to be oblivious of that fact and continues to move higher and it trades clearly above 12280 as of this writing and it looks as though it will continue to trade in a strong manner going into the weekend.

DAX Trading in Buoyant Manner

Looking ahead to the weekend, what seems to be keeping the markets on the edge are reports that North Korea might be launching a missile over the weekend and if that happens, it is going to ratchet up the tension in the region over the weekend which is going to hit the stock markets in a very hard way. Looking at the bigger picture, we can still see that the index is only consolidating and ranging in a very strong manner between the regions of 12000 and 12350 over the past few weeks.

We have been forecasting this to happen and continue over the next few weeks atleast as the German elections loom ahead and this has added to the confusion and the uncertainty in the minds of the investors and traders. It is clear that the investors do not want to commit themselves at the moment with so many risks around and that is why we are seeing this consolidation happen in the DAX over the last few months.

Looking ahead to the rest of the day, we do not have any major economic news from the Eurozone or Germany for the rest of the day. The index has started strongly for the day but we doubt whether this would continue for the rest of the day as the investors would ideally want to get out of their positions in view of the impending tension in the Korean region over the weekend. So we may see the DAX index correcting towards the end of the day.