The DAX index extended gains on Friday supported by US-China trade optimism and positive industrial production data out of Germany. Today’s data front delivered the German trade balance for February which came in above estimate but may not be enough to support upward momentum and risk appetite. Unless there is additional positive updates on the global trade front and clarity on Brexit’s potential lengthy extension, positive price action on the DAX may be subdued.
The DAX Index enjoyed a notable rally last week as it ended Friday 0.18% higher at 12009. The Index has yet to hold above the trend line resistance around 12000/12010 to indicate further advances on the DAX as it is seen faltering below this level. The RSI reading has exited the overbought territory and price has since turned lower with potential to consolidate above the 11940 level. Below this level, there is near-term support at 11910 and strong support at 11850 , of which a break below would be required to indicate a larger pullback.