DAX Index Fundamental Analysis – week of June 26, 2017

The DAX index had a pretty eventful week but those who look at where it ended up for the week would not realise how much of volatility and promise that it had shown during the course of the week, only to lose it all as the week progressed and then end up back within the usual range by the end of the week. It was indeed a great ride during the course of the week for the traders and it has to be said that it is indeed a pity that after all what we saw over the week, neither the bulls nor the bears could push the DAX index beyond the range.

DAX Unable to Break Through Range

There was a flicker of hope for the bulls on 2 consecutive days as the stock markets picked up steam all around the world and this helped the DAX to push through 12900 for 2 days. This was based on the general risk on mood in the stock markets which saw the stock markets go up and the prices of safe assets like gold and silver fall down. But on both days, the advance of the index was beaten back by some strong selling above 12900 and this caused the index to fall back into range on both days.

It should indeed be pretty disappointing for the bulls as they had done all the hard work to push the index through to new highs but they could not continue the good work and push through 13000 which should be their target. So, with the amount of selling above 12900 proving to be too huge, the DAX index fell back into range and closed the week above 12700. It has to be said that time is running out for the bulls to bring in the next leg of the bull run and the longer it takes, the more is the danger of all the hard work being undone.

Looking ahead to the coming week, we have a whole lot of speakers from the Central banks including Draghi and this should guarantee a lot of volatility in the markets in the coming week. We can expect the DAX index to continue to range between 12550 and 12950 unless and until there is a break on either side.