The German DAX is likely to open on a steady note on Wednesday, tracking slightly higher commodity prices. However, with no big economic data coming up and trade related worries subsiding a bit, the focus will be on the next batch of corporate earnings reports. Major European markets ended higher on Tuesday, as mining and energy stocks moved up on rising commodity prices. Germany's DAX climbed 0.40%.
From a technical perspective, the DAX is still trading below the trendline and most importantly below the 200-period MA. Therefore weakness is expected to continue for the next few days unless some major fundamental data reverses the current direction of the trend. Watch out for an important support level at €12,410. The RSI looks mixed to bearish suggesting downwards pressure.
Support: 12410 12160
Resistance: 12640 12765