The DAX Index rose 0.67% higher as ZEW economic sentiment out of Germany and the Eurozone beat expectations and notably entered positive territory. Likewise, today’s Chinese data beat estimates as it showed a positive growth in its GDP figure and industrial production. Though it hasn’t sparked a bullish reaction it should certainly keep risk appetite intact alongside hopes of a US-China trade deal. In addition to the data front, focus will shift to inflation out of the Eurozone which is expected to remain subdued and thereby provide support for the DAX’s gains.
The DAX Index broke through the high at 12030 and pushed towards 12120 before ending at 12101. A breakout above 12120 should clear the path for further advances as the trend line resistance from January leaves room for further gains towards the resistance at 12160. Moreover, The DAX is seen rising with the upper bollinger band with the 20-period MA providing dynamic support. Worthy to note that the the RSI reading has approached the overbought territory and has failed to form a higher high corresponding with price action which may lead the DAX to turn lower. A decline below the 20-period MA would suggest short-term weakness with a move below the 12,000 mark required to negate the bullish bias.