In This Article:
The DAX index continued its strong rebound over the last 24 hour as it managed to break through the 12000 region and rose higher during the course of the day. This has ensured that the rebound has been strong and that the index has managed to recover from the lows that we had seen a few days back.
DAX Pushes Through 12000
The lows had been achieved on the back of fears and uncertainty that there could be a global trade war breaking out with each country trying to follow a policy of nationalism. This, if it does happen, is likely to affect each and every economy in the world and Germany, with it being one of the largest economies and industrialised countries in the world, would also be affected. This fear led the index towards the lows but since the beginning of this week, we have been seeing a recovery which has gathered pace as the days went by.
The index has now managed to cross through the 12000 region which is an important region of selling and this is likely to give a further boost to the investors and traders as well. But on the other hand, the rebound seems to be on shaky ground as there does not seem to be any strong fundamentals attached to it. Also, the risks continue to remain just around the corner and can return at any point of time. The index is also trading within a large range and unless and until there is a breakout on either side, we dont have any reason to believe that the bulls are out of the forest as yet.
Looking ahead to the rest of the day, it is a long weekend for most parts of the world and hence the market would be closed for today but the opening on Monday should be interesting.
This article was originally posted on FX Empire