DAX Index Continues to Range and Consolidate

We seem to have found another range in the DAX index that the traders seem to be quite comfortable with at the moment. Till a few weeks back, this range was lower and the traders seemed to love that range as the index spent weeks and weeks trading in that range and it seemed nothing could push it out of the range.

DAX Chops Around

But as the time wore on, there did come along the ECB which did not seem to be too happy with the way that the economy was doing and hence hinted that the QE would continue for longer than what was initially expected. This led to a strengthening of the index and this coupled with the increase in the global indices as well, has helped the index to push through its previous range and move towards the 13000 region. But for those who thought that the index had been freed, they could not be much wrong.

Now we are seeing the index struggle to push higher over the last few days as the index continues to chop around on either side of the 13000 region over this period. Once again, there is a dearth of fundamentals and economic data that could shake the market in either direction and that is why we are seeing the index continue to chop around over the past couple of weeks, unable to break through the range as of now.

Looking ahead to the rest of the day, we do not have any major economic data or events from the Eurozone or Germany and hence we can safely expect the index to continue to consolidate. We have also seen the US stock indices weaken slightly over the last 24 hours and this is likely to have a small impact on the DAX in todays trading.