Trading & Wealth Management

DAX Daily Fundamental Forecast – February 09, 2017

As we had mentioned in our trading forecasts, technical and fundamental analysis over the past couple of days, we have been seeing the DAX break low towards its support at around the 11400 and then we saw a bounce back towards the 11600 and since that time, over the past 24 hours, we have not seen much action except for some small correction to the middle of the range. This has been happening despite the fact that the US stock markets continued to be strong and they closed strong yesterday as well. This is a sign of weakening of the uptrend in the DAX and it remains to be seen whether this weakening would lead to a bounce in due course of time or whether it would transform itself into a full blown change of trend.

We have been increasingly sceptical of the uptrend in the DAX over the last few days. We have been getting a lot of risks and uncertainty out of the Eurozone over the past few days which includes elections news from France and Germany and all of this has been having an impact on the DAX. We have also been seeing the index trade within a tight range over more than a month now and the ranges get tighter and tighter as the bulls find it more and more difficult to push through on the uptrend. All of this are signs of a weakening trend and with the German elections also approaching towards the second half of the year, we are getting into an important time period for the DAX as the bulls need to regain control now and push through on the trend or else they would expose themselves to the wrath of the bears.

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