The Dax is overtaking November 2015 high
We said couple of weeks ago “The DAX is waiting for a direction”. The direction arrived in the first few days of December, with a strong positive impulse, which continued even after the defeat of Matteo Renzi in the Italian Constitutional Referendum on the 4th of December. This bullish trend received new fuel from Mario Draghi’s decisions (on the 8th of December), with the announcement of other 9 months of Quantitative Easing, at least until the end of 2017.
Technically, the break out of the resistance area placed at 10,800 opened spaces to further rallies and this is exactly what happened, with the German Index which jumped well above 11,000 point, continuing to push upward. The index reached a new 16-month high close to 11,500, despite the terrible news coming from Berlin earlier this week. The first support area is now located at 11,150, while we will have a positive signal if the prices will break 11,500, even if we should consider the lower volumes of this weeks, due to the upcoming festivities.