European markets gained upward momentum on Friday as better than expected Chinese manufacturing data and a healthy US jobs report fueled risk appetite. The German blue-chip index traded 0.73% higher while the global trade front showed no signs of fundamental progress though headlines suggested that the US and China resolved various issues during a call on Friday. Today, Germany and the Eurozone publish their respective manufacturing PMI figures which will provide further insight on the global economy that is burdened by a prolonged trade war. Lower than expected readings would weigh on the DAX. Apart from the data, traders should monitor trade and Brexit headlines to influence market sentiment.
The DAX index erased losses from the preceding two sessions as it closed 94 points higher at 12961 on Friday. The price threaded higher and managed to press above the 12960 level to reach the resistance at 12990. Today, DAX futures are pointing higher as price trades above the 13000 resistance level while the daily and 4H RSI readings are currently overbought and suggest an imminent pullback. A decline below 12960 would be required to indicate selling pressure and target the lower support at 12900 followed by 12800. The latter level separates the DAX from further weakness where support levels at 12750 and 12650 come into play. On the other hand, a sustained move above 13000 would maintain buying pressure and target the higher resistance levels at 13080, 13130 and 13200.
Resistance: 13080 /13200