Morning traders. It was one way traffic for the German DAX yesterday with a strong, Bullish, impulse wave. The reason for the epic rally was the apparent calming of geo political tensions after Iran retaliated in an ‘acceptable way’. Trump comes out and says Iran are standing down and that will be the end of the tensions so everyone says ‘oh, ok great, let’s buy shares again’. And it seems he can literally get away with murder, what a role model.

It’s a quiet day on the data front today. We have the US non-farm report tomorrow, and of course the geopolitical crisis between Iran and the US is still in the spotlight although there is a more limited risk of further escalation short term.

German November industrial production will be interesting and will give us more clues to how the manufacturing sector has performed in Q4.

DAX ANALYSIS

After seeing a failure to break below 12,941 yesterday, the bulls have not looked back. The rally is around 500 points already and we’ve reached a new 2020 all-time high and broken above the 2019 high as well. In fact is was January 2018 since we saw levels this high. 12,604 is the CFD all time high and seems to be the most obvious target considering the US counterparts are already above theirs.

Traders got some excellent results using the IB breakout strategy yesterday, which I looked at this morning in the webinar – see below.

DAX Webinar

Get the link to the webinars here in the Telegram channel