Stronger German industrial production data boosts DAX index to fresh two year highs. Investors cheer the de-escalation in tensions between the US and Iran. President Donald Trump in a statement said that ‘Iran appears to be standing down’. The news calmed markets as there will be no military response.
German Industrial Production s.a. (month over month) came in at 1.1%, beating expectations of 0.7% in November, the yearly reading also beat forecasts as it came in at -2.6%. The Germany Trade Balance registered at €18.3B below estimates of €20B in November.
Dax index getting a hand from Infineon Technologies AG +2.63%, Continental AG +2.06%, Deutsche Telekom AG +2.05% and Deutsche Lufthansa AG +1.77%.
Dax index jumped higher in the opening adding 1.17% at 13,476, hitting the highest level since January 2018. The strong gains today refuel the recent bullish outlook and a move to higher levels is the possible scenario.
On the upside, first resistance for the Dax index is at 13,521.50 today’s top. The all-time high from January 23rd 2018 at 13,596.89 is the next resistance point.
On the downside, immediate support for the Dax index stands at 13,467 today’s low. Yesterday’s low at 13,110 will provide the next support area. While if bears manage to pierce that level the next target stands at 12,950 the low from January 6th .
All in all the technical outlook is clearly bullish for DAX and only an escalation in geopolitical risks can pressure the Dax stocks.