German stocks may open on a steady note Thursday amid hopes for a compromise in the row over Italy's budget. The DAX bounced back from recent sharp losses on Wednesday as investors cheers the positive news on Italy. Trading activity, however, is likely to remain thin amid the Thanksgiving Day holiday in the US. The economic events calendar today has the European Central Bank's monetary policy meeting accounts at 1230 GMT and eurozone consumer confidence data at 1500 GMT.
The DAX rallies 1.6% closing €177 points higher and forming a white candle which is known as a bullish pattern. Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 11380 with strong support provided at 11050. If we don't break down below that key technical support level, a bullish reversal is very likely to happen in the next few days. The RSI looks mixed to bearish, however, signaling some selling action ahead in the short-term.
Support: 11200 / 11050
Resistance: 11660 / 11825