🚨German index extends bullish rally and hits new historic highs
DE40 (German DAX) is extending its rapid gains, which have now continued uninterrupted for 5 sessions. The breakout of historic highs, along with very good sentiment overseas, where U.S. indices are also breaking through their historic peaks, reassures investors that the end of 2024 on the stock markets may be in an optimistic mood. Also, macro data from China’s services and industry came in above forecasts, another ‘positive’ point for stock markets and emerging markets.
The key theme of the day today was PMI data for the service sector. The reading from the U.S. indicated weaker-than-expected sentiment in this key area of the economy, which directly impacted Wall Street indices. A lower reading is potentially a greater chance of faster rate cuts in the US, and this could support local companies in the medium term. Interestingly, however, the price sub-index (that is, the report correlated with the CPI data) indicated that price pressures in the economy remain at relatively high levels.
The DAX broke through its historical peaks on Monday, thereby confirming the overall uptrend that has continued uninterrupted since July of this year. In the near term, it is the maintenance above the peak zone and the psychological barrier of 20,000 points that may define whether the index will continue to sustain the bullish trend in the medium term. Source: xStation
Looking at the hourly interval (H1), we see that the ongoing upward impulse resembles that of September 2024; the price is close to testing the upper limit of the upward channel, near 20050 points. Analyzing the volume, we can see that today’s increases were largely due to the lack of activity of the supply side, which makes the scenario of further increases within the framework of the so-called resistance discovery phase, after the new ATH is broken out, more likely. Source: xStation5
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