The DAX continued to recover as it edged 0.25% higher on Thursday. Gains however remain limited by global growth concerns following President Draghi’s remarks on slowing economy activity in the Eurozone against a backdrop of uncertainty over global trade and Brexit. Today’s data front delivers industrial production from the Eurozone, however markets’ attention will be on earnings reports from Wall street from which the DAX index is likely to take its cues.
Since reaching support at 11850 earlier this week, the DAX has drifted higher whilst remaining in ranging period. Though it retested the support at 11850 yesterday it edged higher and ended at 11935. Holding above 11900 would negate the bearish view and overcoming resistance at 11970 would clear the path for further advances on the DAX. A drop below 11850 is required to signal bearish price action however it seems unlikely given that the price has managed to hold above the dense Ichimoku cloud.