DAX Index Forecast – DAX Corrects As It Approaches 13000

The DAX index has continued to range and consolidate since the beginning of the week as the market and the traders try to hold on to the gains that they have made over the course of last week. It has been a difficult tie for the investors and the long term traders as the markets have basically whipsawed over the last month or so based on the various fundamental and global factors.

But with those factors reducing and with us now seeing the impact of some of those factors also beginning to die out as the time progresses, we are now seeing a recovery in the stock markets in the Eurozone and this has helped the DAXto recover as well. One of the main things that it in favour of the DAX is the fact that the fears and the uncertainty over a trade war is now beginning to recede in a slow and steady manner after the talks between the leaders of the US and the Eurozone and this has given a boost to the auto industry, mainly, in Germany.

Their share prices have since rebounded and this has helped the DAX to recover as well. It should be noted that as the index approaches the 13000 region, we are likely to see a bit of selling which is natural when the index moves towards a psychologically important region. We believe that the index does not yet have the momentum to continue to push higher through this region as yet and hence we could see some correction in the short term.

But with the global stock markets doing well, it is only a matter of time before that begins to have an impact on the DAX as well and if and when that happens, we should see the index begin to move higher once again in the short and medium term as well. All of this is dependent on the QE continuing further of course and that is again a matter of concern for the investors in the medium term.