German DAX Outlook

The DAX from an Economic Perspective

The German DAX rose on Wednesday to a new all-time high, reaching a daily high near the 26,870-point level.

The leading German index posted gains of 1.2%. By mid-morning, it had come very close to last week’s record high, having reached nearly 26,700 points last Thursday.

Meanwhile, the German Federal Statistical Office confirmed on Wednesday that the country’s inflation rate slowed to 2.80% in October on a year-over-year basis, compared to 3.30% in September.

This confirmation was consistent with the preliminary data released by the Federal Statistical Office last month.

The DAX from a Technical Perspective

The DAX rose today near the 26,700 resistance level, which could push it back down to target the 26,200 support level as an initial target, followed by the 25,700-point level.

This scenario would fail if the index breaks above 26,700 in the near term; in that case, it would be possible to look for other selling opportunities with any pullback accompanied by reversal candlesticks.

The long-term downtrend scenario would fail if the index breaks above the 27,100-point level.