The Dax index closed up 0.52% on Wednesday at 13,201.89 with resistance 100 points ahead. The German share index has the all-time highs in its sight at 13,800 but a late dip on Wall Street could weigh on the European open.
The Dax closed over 1% lower as investors reconsider their hopes for a fast-track end to lockdowns. Stocks have rallied after U.S. drugmaker Pfizer and its German partner BioNTech reported a phase 3 trial claiming 90% effectiveness against coronavirus. This was increased to 95% yesterday, which was in line with that of rival Moderna’s offering announced on Monday.
The FT reported that a senior European economist at Legal and General Investment Management saw investors getting too far ahead on their vaccine outlook, saying:
“Our base for some time has been that vaccines will be widespread in the second half of next year”.
The Brexit picture still hangs in the balance and a No Deal outcome would still weigh on the Dax with a move to W.T.O. tariffs on certain goods if no deal is secured by the January 1st deadline.
Dax Index Technical Chart
The Dax is consolidating in a tight range from last week’s highs. The index will now attempt to take out the 13,315 level, with the all-time highs from February at 13,800 up ahead. Bullish traders could go long with a stop below the support at 13,000. 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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