German stocks are seen opening in the red on Monday, tracking Asian markets lower in the wake of selling in the US markets last Friday as investors look ahead for Economic confidence from euro area and inflation from Germany due today, headlining a busy day for the European economic news. At 12.00 pm UTC+4, European Commission releases economic sentiment survey results. The euro area economic confidence index is forecast to drop to 112.1 in July from 112.3 in June.
At 4.00 pm UTC+4, Destatis publishes Germany's preliminary consumer prices. Economists forecast inflation to remain unchanged at 2.1% in July.
From a technical perspective, the German Index retraced back from the resistance at €12,880 level following the bullish breakout move. More consolidation in the range is expected in the short-term. The RSI looks a tad bullish today signalling more room to the upside, possibly back to a re-test of the resistance area.
Support: 12780 12640
Resistance: 12780 12900