The German Dax led the charge northwards in Europe, rallying an impressive 1.3%, pushing to close near the key psychological level of 13500. The swift advance has brought the Dax’s all-time high of 13600 squarely back into view.
Stronger than forecast German industrial production figures have helped buoy sentiment, particularly after yesterday’s dismal German factory orders data. Industrial production month on month came in at 1.1% in November, ahead of expectations of 0.7%. The yearly reading also beat forecasts at -2.6%.
The upbeat data combined with ebbing tensions in the Middle East and the expected signing of a phase one U.S. – China trade deal next week has given Dax bulls plenty to cheer. It is a question of when, not if the Dax will reach a fresh all-time high. The answer is looking to be sooner rather than later.
Levels to watch:
Dax jumped to a fresh two year high and is currently sitting at 13500. Today’s solid gains support the bullish outlook for the Dax which is trading above its 50, 100 and 200 sma.
Near term resistance is today’s high of 13521, followed by the all time high of 13596 (January 2018).On the flipside immediate support can be seen at 13467, today’s low, followed by 13110, the low from the previous session.
The outlook here is bullish. Although an escalation in geopolitical tensions could put pressure back on the Dax.