The DAX rose 1.7% on Tuesday despite EU’s decline in retail sales for December and Germany’s weak services data as positive corporate updates uplifted market sentiment shrugging off concerns over Eurozone’s economic slowdown. The region’s economic deceleration will keep investors cautious and also on the lookout for any positive news to sustain the current stock market rally.
The DAX finally managed to exit its range-bound price action breaking the resistance at 11325 to reach a high of 11390. Moreover, the price has touched the 100-day MA at 11370 acting as the downside resistance on the DAX index. A break above the resistance zone of 11370-11390 coinciding with the 100-day MA will signal a bullish continuation for price while it treads above the 20-period MA at 11230.
Support: 11320/ 11240
Resistance: 11390/ 11450