The DAX modestly rose by 0.08% to end at 11428 on Thursday. The German CPI missed its estimate and exhibited subdued inflation, while today’s data front delivers German unemployment change and retail sales. While today’s economic data alongside the UK’s parliamentary votes on Brexit is expected to impact sentiment, US-China trade negotiations continue today and may provide markets the support it is seeking amidst global growth concerns.
The DAX managed to drift higher on Thursday however remained capped by the resistance area of 11480/11510. The RSI reading continues to hold above the support trend line and leaves room for further advances in the DAX should it clear resistance at 11510 to target the 11550 level. Breaking and holding above the latter level should indicate buying pressure with the next target resistance at 11600. Alternately, failing to overcome resistance at 11510 will leave the index ranging above the 20-period MA with a decline below 11380 required to signal a wave of selling pressure.
Resistance: 11510 /11550