DAX Index Fundamental Analysis – week of March 20, 2017

The DAX generally traded in a steady manner within ranging markets for the entire week. Though the bulls threatened to seize full control briefly during the middle of the week, they were not able to hold on to their gains and quickly lost their control, though not fully. This caused the DAX to settle down into a small trading range for a large part of the week but it managed to close the week well above the 12000 mark which should be a sign of encouragement for the bulls.

DAX Consolidates During the Week

The bulls have been making it difficult for themselves over the last couple of months as they have failed to make much headway in the index despite the conditions being favorable for them. Now, with the stock markets around the world taking a well needed rest, the bulls have been trying to play catch up with most of the stock markets around the world but with no momentum in their direction, they have been finding it very difficult to make much headway.

The only positive outcome over the last couple of weeks has been the fact that they have managed to break through 12000 and hold on to their gains. Though the DAX traded just below 12000 for most of the week, we had been mentioning that it still stayed above the broken resistance and hence the bull trend was very much intact. The situation continues to be so at the end of the week as the index is trading above 12000 to close the week ensuring that the bull trend is intact.

Looking ahead to the coming week, we have the manufacturing PMI data from Germany and other countries in the eurozone but we do not expect them to have much of an impact on the DAX. Our next target for the DAX index is 12350 and as long as the index stays in the 11950-12000 region, the target would still be intact and it would only be a matter of time before the target is reached.