The DAX traded 0.58% higher on Thursday as better than expected earnings out of its member Daimler provided support and overshadowed disappointing economic data. Manufacturing PMI figures out of Germany and the Eurozone came in lower than expected and revealed the region’s economic struggle for growth amidst the US-China trade war. Today, Germany publishes consumer and business sentiment figures which will provide further insight into the economy’s state. Continue to expect sentiment towards the US-China trade war alongside Brexit developments to influence market price action.
The DAX maintained its streak of gains this week as it added 73 points to end at 12872 on Thursday. The price managed to trade above the 12820 resistance and recorded a high of 12916 before maintaining price action below the 12890 resistance level. The RSI reading and price action continue to diverge suggesting that bullish momentum is weakening and a reversal awaits. However, a sustained move above the 20-period MA near 12820 would maintain buying pressure while a break above 12890 would target the higher resistance levels at 12950 and 13000. Failure to hold above the 20-period MA would lead the DAX towards the lower levels at 12750 and 12720. A break below the most recent low at 12650 would be required to impair the bullish view.
Resistance: 12950 /13000