The DAX broke its 7 day losing streak and traded 0.52% higher on Monday. The German blue-chip index found support from Wall Street with a positive earnings release and mixed economic data out of China. The nation’s GDP figure showed the economy grew at its slowest pace in 27 years and raised concerns over the health of the global economy while industrial production and retail sales came in better than expected. Today Germany and the Eurozone publish ZEW economic sentiment figures which are estimated to show a slight improvement though remain in negative territory. Moreover, the US publishes retail sales and industrial production data. The lack of any fresh trade developments should leave economic data with influence over the DAX’s price action.
The DAX seems to have formed a higher low on the uptrend as it found support at 12300 and bounced higher to edge above the 20-period MA and end at 12387. Look for a sustained move above 12400 to target the 50-period MA around 12450 which if overcome would make room for further advances towards the resistance zone of 12480/12500. Meanwhile a break below 12300 would drive the DAX lower with key support coinciding with the 50-day MA at 12190.