The DAX rose by 0.49% on Friday at the back of President Trump’s hopeful comments on the possibility of a trade deal. Nonetheless, market sentiment remains sensitive as conflicting trade headlines sways the DAX in different directions against a backdrop of rising concern over the effects of the trade war on global growth which derails global stock markets. Moreover, latest manufacturing data out of the Eurozone and Germany highlights the region’s economic slowdown which should prove to be another headwind for the DAX. Today there are no major economic releases for the day and given it is a US holiday, a lack of trade updates may see Friday’s shift in sentiment carry itself through the day and provide support.
The DAX traded 0.49% higher to end at 12011 on Friday. The Index is on edge of breaking its bullish channel as it trades above an area of confluence between support at 11850 and the rising trend line from December’s low. The DAX is seen creating a sequence of lower highs and lows which should find resistance around 12150 followed by 12215 should the pattern persist. Failure to trade and hold above the 12090 level will leave the price ranging before a decline below the support around 11960 extends the short-term downtrend towards the crucial support at 11850.
Resistance: 12090 /12150