DAX Index Forecast – DAX Manages to Bounce Higher

The DAX has managed to rebound but the bounce, when the bearish factors continue to exist in the background, needs to be taken with a pinch of salt
Colin First
DAX Tuesday

The DAX index managed to recover from its lows below the 12500 region over the last 24 hours and closed higher for the day. The index is likely to continue to be buoyant for the day today as the stock indices in many of the major global markets have been trading strongly since the beginning of the day today.

DAX Pushes Higher

There has not been much fundamental data or economic news from the Eurozone or Germany over the last 24 hours and what this has meant is that the index has been driven by the global market factors than anything fundamental that is happening within Germany. The risk on factor seen in the global markets has helped to boost the index and it now has managed to push higher though we continue to view the rebound with suspicion. We had done the same on the earlier rise as well and we believe that this time as well, this is more of a rebound and a correction of the downtrend.

DAX Hourly

The Eurozone continues to reel under the impact of a variety of bearish factors that includes the ECB and the QE tapering which is still uncertain as the ECB has yet to take a call on when that would happen, the Brexit process also has to deal with its own set of uncertainties as the UK battles domestic issues and also continues its negotiations with the Eurozone and the Eurozone has also had to grapple with the trade war and its effects as well. All this are likely to ensure that even the moves higher are met with a lot of selling and this is likely to keep the traders busy for now.

These are all major reasons which continue to exist and impact the markets over the last couple of weeks and none of the factors have gone away and neither can they be wished away as well. It is important that the investors and the traders do understand this and do not get carried away and they need to approach all these bounces carefully and with a pinch of salt.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.