DAX Index Forecast – DAX Tries to Move Higher But Sold Into

The DAX index did make a brief attempt at recovery yesterday but the index failed once again at the range highs just above the 12400 region. By this time, the US markets had also opened and the stock indices began to fall and the DAX followed suit and closed the day below the 12300 region once again. This continues the weak trading that we have been seeing in the DAX over the last couple of weeks.

DAX Back in Range

The reasons for the fall and the weakness are aplenty and those factors include global and domestic ones as well. They have already been explained in detail in many of our previous forecasts and with none of those factors having changed over the last few days, the index continues to be weak and it tends to follow the major stock indices around the globe. It has to be said that the major stock indices continue to trade in a weak and confused manner as the investors are in a state of shock.

This state of shock has come about due to the trade war that is currently going on and this has been already discussed and documented. This is the major reason for the market indices to be weak all around the world and we believe that this hold of the bears on the markets is likely to continue in the short term and hence it would be safe for the traders to try and go short on the indices as and when the index picks up as the trend seems to be down for now.

Looking ahead to the rest of the day, we have the services PMI data from Germany but that is unlikely to have much of an impact on the DAX and hence we can expect the index to continue to range in a weak manner. With the US stock indices closing weakly and the Asian markets also following suit, expect the DAX to open in a weak manner and continue to trade so.