German stocks may open slightly lower on Friday as investors fret about the impact of trade wars and sanctions on Russia. Asian markets are trading mostly lower on concerns that tit-for-tat tariffs will destroy trade between the world's stronger economies, the US and China. The second tranche of tariffs, which are due to take effect on August 23rd, follows the first round on approximately USD34 billion of Chinese imports that went into effect on July 6th.
Technically, the DAX is still trading below the trendline and hovering around the 200-period MA. Consolidation is expected in the zone between S1 and R1 or 12500 and 12725. Long-term traders should wait until we break one way or another as for now we are stuck in a directionless market.
Support: 12500 12385
Resistance: 12725 12888