Yahoo Finance DAX Index Daily Fundamental Forecast – February 12, 2018
The DAX index continued to consolidate and trade within a tight range as the stock markets, along with the investors and traders, continue to look ahead to the next direction. The index has been hit hard over the last week and though there was some recovery towards the end of the week, the bearishness continues.
DAX Likely to Stay Steady
The index would hope to carry some of its momentum forward in the coming days and move higher as the recovery late on Friday in the stock markets should give some confidence for the bulls in the days ahead. The fall in the index was something that was long time coming and hence we believe that the traders and the investors were quite well prepared when the index continued to hover around the 13300 region for quite some time about a couple of weeks back. It was clear at that time that the index was struggling to make much of a headway and that it was only a matter of time before the index got toppled over.
The fall over the last week or so has left many investors a bit surprised as the size and the speed of the fall must have caught many offguard. This led to some panic selling among the smaller traders and investors and this has since snowballed into a larger drop than what many would have anticipated. The index went through below 12000 but there the bulls came into their own and have since pushed back the index back above the 12000 region and this has helped them to bounce back though the control continues with the bears.
Looking ahead to the rest of the day, we should see a slow and steady opening to the DAX which should lead to some bullishness later in the day. It is the first day of the week when the moves are slow and low, especially due to the lack of any major developments in the markets over the weekend.
This article was originally posted on FX Empire
