Yahoo Finance DAX Index Daily Fundamental Forecast – October 10, 2017
The DAX index continues to fight along the highs of its range as it has been doing since the middle of last week. After breezing through the 12700 region and reaching the doorsteps of the 13000 region, it has been finding it difficult to penetrate through here and make a clean break for it. So far, it has been quite a struggle for it to break through this region and though the global factors continue to favor a bullish continuation, the bulls have simply not been able to generate enough momentum.
DAX Still Struggling To Break 13000
We had mentioned in our earlier forecasts that apart from the fact that we are just past the all time highs, the 13000 region is nothing more than a psychological mark as far as the bulls are concerned. There does not seem to be any fundamental or technical reason for the index to feel heavy in this region. But the more the time that the index spends here, the more is the risk of the index falling through.
It is likely that slowly, the bulls may get tired due to the lack of momentum in the index and this could lead to some of them selling out or taking profits in this region. We could also see the bears slowly creeping in as they see the struggle among the bulls to break through this region. A combination of these events could then lead to a correction in the index and this is why it is important for the bulls to make their move quickly and also generate enough momentum to ensure that the breakout through the 13000 region is quick and it sticks.
Looking ahead to the rest of the day, we do not have any major new from the Eurozone but we have the trade balance data from Germany. It remains to be seen whether this would be enough to bring in a decisive break in either direction for the DAX index.
This article was originally posted on FX Empire
