European markets are uplifted alongside an improved global sentiment as US-China relations sustain their recent positive tone. Aiding the lift to the German Index is the Deutsche Bank component with news of a possible merge with Commerz Bank which the German government is said to be looking to facilitate. Moreover, German Consumer Price Index reports a reading higher than the forecast, and the European Central Bank is releasing important data headlining a busy day for European economic news.
The Dax climbed 1.38% yesterday closing at 10929.43 on the back of hopes for constructive talks between the US and China. The bullish tone is well in place with an RSI above 50 reaffirming the uptrend. However a divergence between the index and a momentum indicator could indicate that the current upward retracement since early December could be coming to an end. As momentum shifts, there are chances bulls won’t succeed in
sustain to push prices higher above the 100 MA and key resistance area of 11107 and 11160.
Support: 10850 / 10640
Resistance: 11107 / 11160