The DAX 40 has rallied after the US midterm elections and now sits close to its late August record. According to IG, the mid-August high at 26,541 lies en route, and the 27,000 region would be next in line if both highs were exceeded.
The DAX 40's strong rally following the US midterm elections has taken the index close to its 26,618 late August all-time high. The mid-August high at 26,541 was hit on Wednesday but capped the advance.
The 27,000 region is next in line
Next, if both levels were to be exceeded, the minor psychological 27,000 region would be next in line.
Support sits between the 4 September-to-late August highs at 26,168-to-26,106.
Outlook is bullish above two lows
IG's analysis rates the short-term outlook bullish while the index holds above the 3 November low at 25,678. The medium-term outlook is bullish while above the 8 October low at 24,793.
Wall Street rallies as Democrats win Congress
Democrats secured control of both the Senate and House, helping the S&P 500 rise 1.6% to 7,688.62. The Dow surged 3% as investors welcomed the prospect of legislative gridlock and less political uncertainty.
Source: IG
Trading involves risk.
Risk Disclaimer
