The DAX rose by 0.30% on Monday amidst reports that the US and China should resume trade negotiations next week. While trade uncertainty holds, the news provided the trade sensitive German blue-chip index with support during the day. Once again, there are no major economic releases out of the Eurozone today and the DAX will be left to take directional cues from Wall Street under the influence of a slew of corporate earnings reports. Moreover, trade and geopolitical headlines should be monitored as they influence sentiment.
The DAX edged higher on Monday as it gained 29 points to end at 12289. The price held above the crucial support of the 50-day MA at 12200 and moved higher to trade within the resistance zone bounded by the 20 and 50 period MA. Futures are pointing higher this morning as the price trades above the 50-period MA at 12335 and is looking to overcome resistance at 12380 to advance to the 20-day MA at 12420. Failure to trade above the 12380 level should see the DAX find support at the 20-period MA at 12290.