DAX Index Bulls Now Target Yearly Highs

DAX Index started higher the trading session as positive headlines crossing the wires suggesting that a Brexit deal is possible. EU’s Michel Barnier said that negotiations are currently intense and it is still possible to reach a Brexit deal this week. Germany ZEW Survey Current Situation came in at -25.3, topping forecasts of -26 in October, the ZEW Survey for the Economic Sentiment came in at -22.8 above forecasts of -27 in October.

The German main stock index has gained over 10% since the August lows and 17,30% in 2019.

Dax index is 0.31% higher at 12,523 having hit the daily low at 12,520 and the daily high at 12,590 boosted by adidas +1.50%, Fresenius +1.37%, Vonovia +1.25, Deutsche Post AG +1.06%, BASF SE +0.93%, and Infineon +0.73%.

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Dax Index Technical Analysis

DAX index builds on positive momentum which started after the break above the 100-day moving average that happened three sessions ago. Today’s move enhance the recent positive momentum which started from August 15th lows (11,275) as the index breached the 50-day moving average and the 100-day moving average the last trading sessions. On the upside, the immediate resistance is at 12,590 today’s high, a convincing break above might drive prices up to yearly highs at 12,653. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018. On the downside, immediate support for DAX index stands at 12,515 today’s low, while sellers below that level will target the 100-day moving average at 12,139. Next support level for index stands at the 50-day moving average at 12,041.

In London the FTSE 100 gives up 0.34% at 7,188 as the pound trades at 1.2642,  CAC 40 is 0.32% higher at 5,660. In Wall Street, Dow Jones futures, are 0.30 per cent higher at 26,826, the S&P 500 is 0.36 per cent higher at 2,976 while Nasdaq is 0.40% higher at 7,889.Download our latest quarterly market outlook for our longer-term trade ideas.

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