DAX Rallies

The DAX analysis on the daily timeframe shows a renewed optimism to the German economy. Recently we have seen a strong bullish push after price was rejected by the daily 200EMA. This gave price the momentum to break above the descending trendline and also break through the 12375 resistance.

Price is now at the 12825 resistance. The monthly candle close for September has closed very strongly bullish and we are now looking for a break retest of the 12825 resistance for further bullish momentum.

Even the VW stock rallied after new findings that more people are involved in the emission scandal and is now trading close to 140. It appears that market participants favor the rally and are supporting it even in the hard time some of the companies face.

Chart: DAX, D1