DAX Price Forecast – DAX Likely to be Choppy Near Support

The DAX index continues to chop around the lows of its range as the fundamentals and the news dried up during the course of Friday. We also saw the global stock markets take a breather towards the weekend and this helped the index to stay stable during the course of this period. This is expected to continue for the short term.

DAX Likely to Stay Supported

The DAX has been hit hard by the threat of a trade war and also by the actions of the ECB as well as the incoming data which continues to be weak over the last few weeks. Though some of the stock markets in the other regions of the world in Asia and the Americas have been able to survive the fall due to the risk of the trade war, the Eurozone markets have been hit hard as the economies of many of the countries are already throwing up some weak data and the effect of the trade war would only make the problem even worse in due course of time.

The index is likely to spend some time near the lows of its range as it has been doing over the past couple of days. We believe that the index has not generated enough momentum to push higher and with the global stock indices, especially the major ones, also in a state of flux and choppiness, we believe that this would weigh on the DAX in the short term and would keep it under pressure.

Looking ahead to the rest of the day, we have the German IFO Business Climate data and this is unlikely to have too much of an impact on the DAX as such. There has been some steady trading in many of the markets around the world since the DAX closed on Friday and we believe that something of the same would be seen in the index as well for the day.