DAX Index Struggles to Push Through 13000

The DAX index continues to struggle to push through the 13000 region as the index ended below that over the last week. We do not envision any major push higher in the short term and we have been saying this for the past few days. We believe that there is going to be a lot of selling happening in this region.

DAX Likely to See Some Correction

This selling is going to prevent the pair from rising further at this point of time and we also see that the fundamentals and the momentum in the markets is not yet strong enough for the push higher. So, we could see some correction and consolidation in the region as the investors and the traders begin to take some profits off the table and we should then see the traders looking to buy the stocks at lower prices. This is sad in a way as the market around the world are in a raging hurry to move higher and at this point of time, the DAX index is finding it difficult to move higher and join the other indices.

Though the global risk sentiment is positive and we are also seeing some weak data out of the Eurozone which should delay the QE tapering and ensure that it continues for longer than what was expected, the impact on the index has been quite limited so far and we believe that this is unlikely to bring in a major change in the short term. We have seen the index break through the range but breaking through the 13000 region is going to be a different matter altogether.

Looking ahead to the rest of the day, we do not have any major fundamental or economic news or data and hence we should see the consolidation and ranging continue for the day as we might see some profit taking later on in the day.