Friday, April 5, 2019

DAX30 - 05 April 2019


Fundamental Highlights

DAX Index rose 0.28% to end at 11988 on Thursday as US-China trade optimism persists. However, headlines have done no more than report that a deal is close to settlement between the US and China, suggesting empty rhetoric and leaving the prolonged trade conflict a global headwind amongst Brexit and slowing global growth. Moreover, the ECB’s account on policy expectedly reaffirmed the pessimistic outlook on the Eurozone’s slowing economy. In terms of data, German numbers more or less undermine the performance of the economy as factory orders plunged while today’s industrial production data came above estimate and may buoy positive price action on the DAX alongside positive updates on Sino-US trade progress.

Technical Analysis

The DAX Index tested a major trend line resistance around 12000 and edged slightly above it towards 12030 before retreating to take a breather. Nonetheless gains were maintained, and now the price would have to hold above the 12,000 level to indicate the presence of buying pressure and point towards a push to the resistance at 12100 followed by 12160. Failure to hold above the 12000 level coupled with a break of the trendline support on the RSI should lead the index lower with near-term support at 11930 followed by strong support at 11850.

Support: 11930/11850
Resistance: 12030/12100

Chart (H4)