The DAX Index is trading higher in today’s trading on news that Wirecard has a new chairman. Germany’s blue-chip stock index is up by over 10 points or 0.07% at 13,493.13 despite despite worse-than-expected data. Meanwhile, DAX Index CFDs traded as high at 13,527.6 earlier today.
Destatis earlier reported that wholesale prices in Germany were flat in December. It was expected that the leading inflation indicator would print a 0.2% uptick for the month.
Gains were led by Wirecard at 2.71%. The German payments company attracted investors after news that its chairman, Wulff Matthias, announced that he would step down for personal reasons. The news was bullish for the company’s stock because he will be succeeded by Thomas Eichelmann who has been known to be more open to more stringent auditing practices. The company has endured allegations of fraud and creative accounting in the past. In fact, in February of last year, Singapore police raided Wirecard based on these accusations.
On the other hand, Lufthansa leads losses at -2.09%. The airlines losses extended today after it announced last Friday that it would cancel flights to Iran until January 20.
Read our Best Trading Ideas for 2020.
DAX Index Outlook
On the 4-hour chart of DAX Index CFDs, we can see that the stock index is trading near its record highs. It may pull back a little and test its previous highs at 13,409. This price also coincides with the 23.6% Fib level when you draw from the low of January 8 to the high of January 10. Reversal candles around the area may mean that the DAX Index is headed to new highs above 13,547.4. On the other hand, if support does not hold, it could fall to its January 7 highs at 13,280.0.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.