The DAX index is slightly higher today as the German stock index digests the latest moves at restructuring following the Wirecard scandal. The index has been expanded to feature ten new members, effectively opening the door to a new DAX 40 appellation as opposed to the present DAX 30 name used for the index.
Furthermore, potential new members must meet profit standards in earnings for at least two years before they can join the DAX index.
Technical Outlook for DAX Index
Low volume trading continues to be the hallmark of this week’s price action, with price activity for Thursday showing a 0.03% gain on the DAX. The 13346.699 price level (14 September and 25 November highs) remain the price to beat for buyers. A break above this level extends the projected price move following the break of the bullish pennant on the daily chart. This move may aim for 13792.286 if the measured move plays out. This move must take out 13473.918 and 13629.286 along the way.
On the flip side, a drop below 13191.155 invalidates the bullish pennant and opens the door towards 12882.686 and 12625.628. The 25 September and 26 October lows at 12351.816 can also not be ruled out.
DAX Index Daily Chart