The DAX fell 0.04% during Monday’s session. Investors are cautious as recent economic data has highlighted a deteriorating economy in the Eurozone and Germany. Eurozone retail sales and PMI reports are due today and any disappointing data may override positive cues from international markets and limit gains on the DAX index. Concerns over the Eurozone’s economic performance, while Brexit and US-china trade relations remain uncertain, will continue to weigh on investors’ sentiment and in turn German equities.
The short term outlook on the DAX index is neutral confirmed by the RSI hovering around the midline of 50. While the index fell to a low of 11100, it failed to break below the 100-period MA representing a dynamic support for the DAX index as it continues to range within the constricted Bollinger bands. A breach of the 100-period MA could push the index to lower levels at 11050 and 11000 while a break above the resistance at 11245 will push price to retest the 11320 level.
Support: 11100/ 11045
Resistance: 11245/ 11330