The DAX index is up slightly today as the strong August momentum continued. The index is up by 0.60% and is trading at €13,112, which is a few points below this month’s high of €13,245. The gains made today add to the more than 6% gains made this month.
The index has outperformed the pan-European Stoxx 50, which has gained by about 4% and the FTSE 100, which has dropped by 0.15%. Still, it has lagged its American counterparts like the Dow Jones and S&P 500 that have gained by more than 8% and 9%, respectively.
There is no major news from Germany today. This means that investors are still continuing with last week’s momentum. Investors are also reacting to the shift in policy by the Federal Reserve. In a statement at the Jackson Hole summit, Jerome Powell signalled that the current low interest rate regime will continue.
This is positive for DAX index constituents because of the amount of money they make from the US. For example, the US is the biggest market for companies like Adidas, Volkswagen, and BMW. Also, it means that the European Central Bank (ECB) could follow in Fed’s footsteps.
Most companies in the DAX index are in the green today. The best-performer is Covestro, whose share price is up by 1%. Adidas, Heidelbergcement, Linde, RWE, and BMW are other top performers. On the other hand, only Fresenius and Siemens AG are in the red today. Their shares have dropped by 0.61% and 0.23%, respectively.
DAX Index forecast
The daily chart shows that the DAX index has been in a strong upward trend after dropping to €7945 in March. In July, the price reached a high of €13,290. As shown below, the index is attempting to move above this level but it is finding some resistance. Also, the DAX has formed an ascending triangle pattern.
This means that the price is likely to continue rising as traders attempt to move above the resistance at €13,290. If it does this, the next target will be €13,350. On the flip side, a move below the ascending trend line at €12,628 will invalidate this trend.