Yahoo Finance DAX Index Daily Fundamental Forecast – October 23, 2017
The DAX index continues to struggle to break through the 13000 region and this week could provide a make or break situation for the index to either push itself higher through this region and make the break stick or to expose itself to the vagaries of the global market and the investors and hence correct itself lower.
DAX Continues to Struggle
When the index broke through the 12600 region a few weeks back and made swift progress through towards the all time highs and the 13000 region, the traders would have been looking forward to a clean and easy break through this region and onwards further towards 13200 and 13500 in a swift manner. But what they have got since then has been a period of attrition over the last couple of weeks with very little signs of any breakthrough happening.
Even last week, we saw the index breaking through 13000 and closing the day higher in the middle of the week but this was quickly followed by selling on the next day which pushed the index back below 13000 and that is where it closed for the week on Friday as well. The index has been weighed down by some domestic and global factors and while stock indexes in the US and certain parts of Asia have been able to shrug off such uncertainties and move higher, the DAX has been unable to do so.
Looking ahead to the rest of the day, we do not have any major news from Germany or the Eurozone. The headlines for the Eurozone over the weekend has been dominated by the situation in Catalonia and this is likely to weigh on the stock indices in Europe for the day. So, we can expect some more consolidation under pressure from the DAX index for the day and this ensures that a break through the 13000 region is unlikely to happen today.
This article was originally posted on FX Empire