Traders resumed buying German stocks yesterday on the back of healthy economic reports. However the gains made in early hours were erased thanks to mixed macro data outcome in Germany and the Eurozone. DAX volatility was high yesterday with erratic price movements back and forth before the index ended the day flat. German stocks look set to open slightly lower today as concerns about Turkey's financial crisis continued to weigh on investor appetite. High volatility can be expected from the index in the coming days as the ongoing trade conflict weighs on markets.
German DAX is expected to experience range-bound momentum across today’s market hours over positive influence from better than expected economic data and dovish cues from international markets. A range between the old-support turned resistance at €12,500 and an important support level at €12,335 has been identified. The RSI looks bearish signaling a drop in the next few hours and a retest of support levels.
Support: 12335 12188
Resistance: 12500 12725