Yahoo Finance DAX Index Daily Price Forecast – DAX Buoyant as it Tries to Find Support
The DAX managed to close the day yesterday higher for the day and it looks as though the index would continue to trade in a buoyant manner for the short term. As we had said yesterday, the index seems to be trying to form a base around the 12200 region and once the consolidation and the ranging in this region is over, we should see the bulls trying to take control of the index and pushing it higher in due course of time.
DAX Moves Higher
The stock markets around the world have been trading within a large range and the DAX has a tendency to follow the major stock markets of the world. One of the major reasons for that is that the economy of Germany is pretty much stable for most of the time and hence the volatility is mainly driven by the events around the world and outside Germany that is likely to have an impact on the German and the Euro economy as well. The euro economy is likely to be impacted by the happenings within the UK and the uncertainty around the Brexit process and this is likely to be the main risk event for the DAX in the short term.
If the bulls manage to hold the support region around the 12200 region over the short term, then we are likely to see the market, not only in Germany, but around the world as well begin to pick up steam and begin their next leg of their bullish run. But a lot of that would depend on how the following days pan out and what mood Trump is in and he has emerged as the main disruptor for the markets around the world over the last few months or so with his statements as well as actions. We will have to see how all of this pans out in the short term.
This article was originally posted on FX Empire
