DAX Index Price Forecast – DAX Expected to Open Weak

The DAX index continued to be choppy for another day yesterday as the market clearly lacked direction. The US and the Asian stock indices fell through the course of the day but the impact on the DAX due to this was minimal. This was due to the fact that any of the fundamentals continue to be in favour of the Eurozone indices and hence they did not join the move lower.

DAX Likely to be Weak

But it remains to be seen how long the DAX would be able to survive this onslaught on the world stock markets and we expect a weak opening to the index during the day today on the back of weak closing of the US stock indices and also considering how weak the Asian stock indices are, at this point of time. Though the fact that the QE continues at this time and is expected to continue in the short term and medium term as well and the trade war woes and uncertainty have also been sent to the sidelines at this time, there is this feeling that we are in a bearish market and hence these factors are not likely to have as much of an effect as they normally do.

So considering the fact that the global stock markets have been falling over the last couple of days and the fact that the reaction from the DAX to this has been pretty much limited, we believe that it is only a matter of time before the DAX also starts falling and if and when that happens, the region around 12500 would be the initial target of the bears. The bulls need to be careful at this point of time as the global stock indices are seeing some uncertainty and profit taking as well.

Looking ahead to the rest of the day, as we have said before, we expect a weak opening in the DAX due to the fall in the global stock markets and this is only going to get worse as the day progresses as the selling is likely to continue in the short term.