DAX Index Likely to Stay Under Pressure

The DAX index has managed to stay stable over the last couple of days as the risks in the Eurozone region begin to settle and this has helped to calm down the nerves of many traders and investors. It remains to be seen how long this would last as the risks have only been swept under the carpet.

DAX Looking to Recover

Last week, we saw the DAX index take a nosedive following the uncertainty and the confusion in the Eurozone but the index began to stabilise later in the week as we began to see some bottom fishing as well. This led to a recovery but the index is not yet out of the woods and it remains to be seen how the recovery is going to go from here. A fix has been made for the Eurozone issues and the market seems to have accepted that for now.

The index has been making a slow and steady recovery post this fix but has been unable to surmount the 12800 region so far. We have said that in our previous forecasts as well that the index has to get through this region to continue its progress through the 13000 region as well in due course of time. So that is why we are seeing a consolidation here as the traders and the investors are still undecided on whether this is a good time to push through.

Looking ahead to the rest of the day, we are likely to see the index continue to be buoyant, taking a cue from the global indices which have been doing well over the past 2 days. But the markets move in a cycle and hence it is only a matter of time before we could see some correction and the bulls in the DAX would hope that the index would be quickly be able to adapt to the bullishness before the next correction sets in.