The DAX index posted strong gains on Friday as it rose 1.89% to close at 11299. Investors decided to take a hopeful stance on US-China trade relations as news of progress and the resumption of negotiations this week suggest a pending trade deal may be in the picture. With positive news on the global trade front, and the lack of any important economic data pertaining to the Eurozone, the outlook on the DAX this week will rely on news driven sentiment.
The Dax index managed to bounce off support at 11,040 and surged above the 11250 level. A sustained move above the 100-day MA at 11280 should confirm buying pressure and advance the index to test the resistance at 11390. Traders' reaction to the 11390 level will further determine the outlook on the DAX index.
Support: 11250/ 11150
Resistance: 11390/ 11480