DAX Index Price Forecast – Index Likely to Get a Boost

After a brief period of correction, the DAX index bulls are well on their way to establishing control over the index for the short term. We have seen a strong rebound from the support region around 12500 and with the German economy continuing to show signs of strength, there is no reason why the index should not continue to move higher in the coming days.

Index Boosted by Risk On

The DAX has been pretty solid over the last few weeks but that solidity has only led to stability and has not resulted in a great bullishness. The global factors have been having a large say in the direction in which the DAX is likely to move and due to this, we have seen the DAX under pressure as the threats of a trade war rear its head again and the ECB continues to grapple with the Eurozone economy. The G-7 meeting did not yield much results and it led to more bad blood between the US and others rather than any conclusion.

The US continues to believe in escalating the trade war and this is likely to kee some pressure on the markets. On the other hand, there has been some significant progress in the tensions between North Korea and the US with the talks between the leaders from the 2 countries happening as we write this. This is going to be huge for world peace and we are likely to see that this is going to be positive for the markets and hence we would not be surprised if the DAX opens on a bullish note and we see the bulls using this opportunity to push the index towards 13000.

Looking ahead to the rest of the day, we believe that there would be a bullish opening for the DAX and it would then be upto the bulls to continue pushing higher and take the index towards 13000 and beyond.