Thursday, June 6, 2019

DAX30 - 06 June 2019


Fundamental Highlights

The DAX modestly rose 0.08% to end at 11980 following its surge of 1.5% on the previous session. The upside shift was prompted by trade headlines suggesting that China and Mexico were willing to negotiate with the US amidst escalating tensions. Global equities were able to recover with the hopes of averting trade wars on various fronts alongside a dovish FED from which Wall Street provided positive cues. Today, Germany published factory orders report which came at 0.3% above its estimate of 0.1%. The data should provide support should Eurozone’s 3rd estimate GDP figure follow suit and beat expectations. Moreover, while interest rates are likely to remain unchanged, the ECB conference will be closely watched for clues on monetary policy as it is likely to hold influence. Meanwhile, trade headlines should be monitored as any negative developments would shift the recently improved sentiment towards the global trade war.

Technical Analysis

Following the surge on Tuesday, the DAX struggled to extend gains on Monday as it falters around the 12000 level which keeps the DAX in negative territory. Failure to hold above the 11930 level would negate the chances of further upside and suggest that index’s recovery may take a short-term shift to the downside where it meets the support zone of 11850/11870. Rising and holding above the 12,000 level would indicate buying pressure and target the resistance at 12080 which would signal the continuation of gains towards 12150 if broken.

Support: 11930/11850
Resistance: 12080/12150

Chart (H4)