DAX Index Continues to Consolidate the Gains

The DAX index consolidates the gains that it has made during the course of the week.  The weakness that has been seen in the US indices do not seem to have affected the index at this point of time and thats why we have been seeing the index being able to continue to remain strong in the short term.

DAX Holds Onto Gains

The DAX has been content to weigh itself against the factors that continue to exist within Europe and when that happens, we do see that the impact on the index from the global factors begin to lessen and thats what we have been seeing since the beginning of the week. Also, without such a push, it would have been difficult for the index to breakout through the range and that is the reason why the index has been able to push higher during the course of the week. We have seen the index taking its time to consolidate and the breakout has not been followed by a huge move in the direction of the breakout as yet.

This is the only thing that should be bringing in a sense of disbelief for the traders as far as the breakout is concerned and hence it might be a wise call to wait for the index to come back to the region of the breakout so that it would be a good place to try for a long with a short stop loss at that time. Till then, the uncertainty would only persist and that is going to be a difficult time for the trades to be entered.

Looking ahead to the rest of the day, we have the NFP data from the US later in the day and that is likely to have a gentle impact on the DAX on the basis of its direct impact on the US stock indices. On the back of the weak NFP last month, the traders would be hoping for a strong comeback this month which should help the stock markets.