DAX Index Fundamental Analysis – week of October 9, 2017
The DAX continued from where it left off the previous week and continued higher during the course of last week though it has been struggling to break through the 13000 region for the past few days. We believe that it is only a psychological mark as far as the index is concerned and that it would be only a matter of time before it breaks through. We look ahead to the coming week for that to happen.
DAX Continues Bull Run
The index has been buoyed up by generally good data from Germany and the Eurozone overall during the course of last week. Though the data points were only minor as far as the economy is concerned, they showed that the economy continues to be strong. The threat of tapering by the ECB has gone into the background and the ECB has to be appreciated for ensuring this. Draghi has been trying to sound as dovish as possible without denying that the economy is doing well and this has helped to reign in the euro and also helped to keep the strock markets in good health.
After being bogged down by the uncertainty over the elections in Germany and its results, the DAX has finally been able to steer clear of all that and move higher and all the consolidation that had been happening over the previous weeks have now led to a strong and decisive breakout. Of course, there has been some stalling now around the 13000 region but once the breakout from here happens, we are likely to see the index move quickly higher within a matter of days and thus join the other global stock markets in their bull run.
Looking ahead to the rest of the week, we do not have any major data from Germany or the rest of the eurozone during the course of the week and hence, we can safely expect the next leg of the bull run to continue during the coming week. Once the 13000 region is cleared, we should be looking at 13200 in a matter of few days.
This article was originally posted on FX Empire