The German DAX may open on a mixed note on Friday after Chinese growth figures missed expectations, suggesting that there was downward pressure on the world's second-largest economy due to the ongoing Sino-US trade war. The DAX tumbled 1.1% on Thursday after the European Commission said Italy's 2019 budget draft is in serious breach of EU budget rules.
The markets in Germany and the rest of Europe have spent this week trying to pretend some recovery, but failed to break any major resistance on the short and medium term. Instead, it appears we now face some sharp reversals from the long-term uptrend channel. On a daily chart, a breach of the 11460 support could accelerate selling as sell stops get activated. Should this happen we might see the DAX tumble all the way to 10,785 as early as next week.
Support: 11460 10785
Resistance: 11910 12185