The DAX Index rose 0.72% to close at 12059 as positive corporate updates and an increase in Germany’s trade surplus provided bullish support. On trade news, President Trump’s latest tweet on Friday claiming talks with China were productive despite not having ended with a trade deal turned early losses into gains. However, the positive remarks can only provide temporary relief before fears over trade tensions and its impact on the global economy take over market sentiment. There are no major economic releases out of the Eurozone today and the lack of progress on US-China trade negotiations may keep risk appetite on hold as markets await further developments.
The DAX index managed to find support around 11970 and edged above the 20-period MA towards resistance at 12200 before ending at 12059. While the main trend remains bullish, the daily RSI reading hovers around the mid-line suggesting that price will either extend the pullback or rebound from the support found at 11970. Look for a sustained move below the 20-period MA around 12110 to indicate selling pressure and a break below 11970 to target the support around the 50-day MA at 11870. Meanwhile a move above the 11200 level would be required to test the resistance at 11250 separating the index from bullish pressure.
Resistance: 12110 /12200