Yahoo Finance DAX Index Price Forecast – DAX Likely to be Buoyant
The DAX did not have a great day on Friday as it fell hard back towards the 12000 region during that period and it looks as though we will be in for a period of consolidation and ranging for the next few days before we see the next major move in the markets. The stock markets have been having a tough time of late and similar to the euro market, it is to the credit of the bulls that they have been able to hold up the DAX index so far and this helps them to hope for better things in the days and weeks to come.
DAX Trying to Find Base
Like the euro, the DAX index also seems to be forming a kind of head and shoulders in the daily chart and technically, this should give the bulls a boost ahead of the end of the year. As long as the shoulder of the formation holds, we should see the index trying to form base in the coming days and once that periof of consolidation is over, we should see the index moving higher. If this does happen, then we should see the DAX making it way towards the 12400 region as the first target.
Beyond that region, it would be anybody’s guess and a lot of that would depend on the fundamentals as well. As usual, the data from Germany continues to be strong and it has always been so for an economy that is based on strong fundamentals and manufacturing. The confusion and the uncertainty around the Brexit process seems to have had little effect on the DAX so far and we believe that it would continue to be so in the short and medium term as well. This is the reason why we believe that the bulls would soon take control of the index and seek to push it higher in due course of time and the region around 12000 might be a good place for the traders to go long with a tight stop loss.
This article was originally posted on FX Empire
