DAX Index Forecast – DAX Moves Lower But Within RangeThe index has fallen lower in line with many of the global markets but we believe that support is nearby
The DAX index moved according to the well laid out script over the last 24 hours. We had mentioned the script in our forecast yesterday where we had pointed out to the fact that the Asian markets were falling yesterday and hence the DAX would also follow suit and continue to trade in a weak manner for the rest of the day.
DAX Looking Weak But Steady
This is what happened during the course of the day and the index opened the day in a weak manner and though there were attempts to stage a recovery towards the later part of the day, the attempts were not successful and so what we got was that the index ended the day just above the 12400 region. This just continued the downtrend from where it had left off and this is one of the reasons why we had said that the traders should not be carried away by the move higher as the fundamentals continued to remain weak and hence the move higher should be viewed as a correction more than anything else.
This turned out to be largely true as the fears over the trade war began to return to the markets yesterday and this pushed the markets lower. The trader war between the US and China only intensified further yesterday and the day before and there does not seem to be any end in sight. It is also likely that many of the European countries may also join the trade war and their economies are also likely to suffer as a result. Keeping all this in mind the traders and investors are a bit wary of buying the stocks at this point of time.
Looking ahead to the rest of the day today, the markets around the world have been mixed with the US stock indices closing lower but the futures moving higher and the Asian markets also being mixed with some moving higher and others moving lower. This is likely to affect the DAX which would probably open in a steady manner and have some steady trading for the day as it awaits the next push.