FX Empire

DAX Index Fundamental Analysis – week of November 6, 2017

Colin First
Updated

The DAX rose higher during the course of the week as the index was finally free from the burden of the ECB and the bulls got a chance to express themselves which led the index higher. The fact that the dollar was steady during the week and there were no major risk events also helped to calm down the markets and this also contributed to the move higher.

DAX Likely to Continue to Push Higher

For many weeks now, we have been saying that it was only a matter of time before the DAX joined the global stock market rally. The DAX was mainly held back by the threat of a quick tapering of the QE from the ECB. But with that threat being removed by the ECB in the week before, where it said that the QE would be extended by a year atleast, that was that the bulls needed to buy the shares and push the index further upwards.

DAX Daily
DAX Daily

The DAX index shot through the 13200 region in the week before and last week, it pushed towards the 13500 region which was our next target once it became clear that the DAX would be freed from the pressure of the tapering. So far, the index has not been able to stay above the 13500 region but it looks as though it might only be a matter of time before it does so. There does not seem to be any sign of a reversal of the uptrend just yet and so we are confident of the bull run continuing even further.

Looking ahead to the coming week, apart from the speech from Draghi, there is not much news from either the Eurozone or Germany and hence we can expect some consolidation during the early part of the week which is then likely to give way to a break higher as the index moves up. Once the index manages to break through 13500 and stay above it, the 13800 region is likely to be the next target of the bulls as far as the DAX is concerned.

This article was originally posted on FX Empire

More From FXEMPIRE:

and

Recommended Stories