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DAX Index Likely to Move Higher

By:
Colin First
Published: Jun 7, 2018, 07:31 UTC

The index is likely to be buoyed by the global improvement in risk

DAX Thursday

The DAX index recovered late in the day yesterday and now trades comfortably above the 12800 region as of this writing and it appears good for more. After a brief period of consolidation, the global stock markets are back in a roll as of now and this has helped the stock indices around the world to move higher.

DAX Likely Higher

The Asian stock indices are also performing strongly at this point of time and this should bode well for the DAX when it opens. We should see a strong opening under normal circumstances but another factor that we have to keep in mind is the situation with the ECB and the Eurozone. The situation in Italy has fairly steadied itself over the last few days and this has also been a boost to the DAX for now and this should help to keep in buoyant for the short term. But ironically, it could be the ECB that could throw a spanner in the works.

DAX Hourly
DAX Hourly

The ECB had been quite hawkish about the economy during the last few days and what this has done is that it is has led to expectations that the QE would end soon. This is a view that has been chopping around of late with one month, we have people saying that it would end soon and in the next month, the view being completely changed. We are still not sure about that but the growing anticipation over the tapering of the QE is likely to dampen the spirits of the DAX in the coming days and this could impact the index.

Considering the above, we would not be surprised if we see some choppy trading in the DAX in the coming days but the global bull run in the stock markets is likely to win out and the region of 13000 is too close and it is likely to be very tempting for the DAX bulls in the short term.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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