The German blue-chip index barely rose as it ended 0.05% higher on Tuesday. Hopes for a partial US-China trade deal in November keeps market sentiment buoyed while the likelihood of averting a no deal Brexit increases even as the UK parliament disapproved of PM Johnson’s schedule for passing the Brexit deal. Today there are no major economic releases out of the Eurozone to impact price action. The DAX may take directional cues from Wall Street which will see major US corporations publish third quarter earnings reports. Expect trade headlines and any updates on Brexit’s course of delay to influence sentiment.
The DAX recorded a tentative gain of 6 points to end at 12754 on Tuesday. The price attempted however failed to reach and breach the high at 12820. The price turned lower as did the RSI reading from the overbought territory. Today Dax futures are pointing lower as price traded below the 12700 level near the 20-period MA to find support at 12650. Trading below this level would lead the DAX to the dynamic support provided by the 50-period MA near the 12600 level below which price would target the lower support levels at 12555 and 12500. Meanwhile, holding above the 12700 level would indicate buying pressure and lead to a re-test of the resistance near 12820.
Resistance: 12820 /12890