DAX Index Daily Fundamental Forecast – May 22, 2017
The DAX index recovered smartly on Thursday as fears and uncertainties over the political turmoil in the US began to recede slowly. This provided an opportunity for the stock markets around the world to post a recovery but it remains to be seen whether this is just a dead cat bounce or whether the index is likely to continue to move higher. But what this shows is the fact that the uptrend is very tenuous and with the connected world that we live in today, it just takes a small incident to happen in one part of the world for the markets in the rest of the world to get affected deeply.
DAX To Be Under Pressure
This is the reason why we had mentioned over some of our forecasts last week that the bulls were struggling a bit to push through the index into the high parts of the range and that it could lead to a correction and we saw the same in the middle of last week. This is just a sample of what could happen and therefore it is important for the traders to be wary and nimble and be ready to move in any direction in this market condition so that they are always aware of the risks involved.
Your capital is at risk
Today is the start of a new week and there has not been much happening over the weekend and so we expect the DAX index to open in a steady manner and probably consolidate through the course of the day as the markets await for some direction during the short term.
Looking ahead to the rest of the day, we do not have any major news from Germany for the day and so, as we had mentioned, expect some consolidation and ranging as we have some very strong buying support in the 12550 region.