Thursday, May 9, 2019

DAX30 - 09 May 2019


Fundamental Highlights

The German blue-chip index was the outperformer amongst European Indices on Wednesday as it rose 0.72%. Upside support stemmed from positive corporate updates and economic data which showed German Industrial production data beat estimates and rose 0.5% in March. However, global trade news failed to provide any real comfort as China would reportedly retaliate should the US raise tariff rates this Friday and the two nations fail to find unanimity in trade negotiations set to resume today. Earnings reports out of DAX constituents today will impact price action while the strong influence lies in US-China trade developments. Consequently, markets will look to updates on trade talks to determine market sentiment and drive price action on the DAX Index.

Technical Analysis

The DAX Index found support at 12030 and drifted higher to end at 12179 on Wednesday. Gains remain limited by the 20-period MA acting as dynamic resistance and an indicator of near-term direction. Trading above it would bring into view the 12250 level separating the DAX from bullish pressure, while holding below the 20-period MA around 12180 could trigger a break through the crucial support at 12030 in order to form a new low and target the support zone of 11970/11940 on the short-term downtrend.

Support: 12030/11970
Resistance: 12180/12250

Chart (H4)