The Dax Index was 0.46% higher on Wednesday as the German stock index approached the 13,315 resistance. The level was nearly hit on Monday and it was here that the market failed in July and September.
The Dax index has jumped higher from the U.S. elections as it was prjected by the media that Joe Biden would win. This has traders expecting a more EU-friendly approach to trade from the U.S. after President Trump sought tariffs and tough negotiations on trade. The same dynamic has been seen in the Chinese Yuan because of the trade deal outlook.
The Dax has been given a further boost from the talk of a Pfizer vaccine as the potential for an end to lockdowns could see the German economy boosted earlier than expected and it would improve the operations at the country’s manufacturing bases.
Deutsche Post DHL reported earnings yesterday and the company saw higher profits for the third quarter, Revenues were boosted by the surge in online shopping seen in the lockdowns. The company also gave a positive assessment of 2020 and 2022 guidance, alongside a healthier free cash flow forecast. The stock initially surged on the vaccine news, but gave up gains as traders considered the outlook for the e-commerce side of the business.
Dax Index Technical Outlook
The Dax has rallied from lows near 11,500 to close in on the 13,315 resistance which capped gains in July and September. A move above there could test the all-time highs from February. Stops should be kept tight on long positions. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Dax Index Daily Chart
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