Tuesday, June 11, 2019

DAX30 - 11 June 2019


Fundamental Highlights

The Frankfurt Stock Exchange was closed for the holiday on Monday and the DAX resumes trading today where futures are pointing to a positive opening in response to improved risk appetite as the US and Mexico reached an agreement that avoided the implementation of tariffs. The focus will now shift to the prolonged US-China trade which has yet to see progress as President Trump threatens to raise tariffs should negotiations between the two nations cease. Trade developments should be monitored as they dictate market sentiment and overall direction in the DAX, while the release of PPI data from the US may provide direction during the day.

Technical Analysis

The DAX futures traded within a range-bound on Monday as the price held above 12050 whilst remaining below the resistance at 12130. Meanwhile the RSI reading sits below the overbought territory suggesting there is room for price to advance further before a lower move takes place. Overcoming resistance at 12160 would clear the path towards 12200 and 12250 if it generates enough bullish momentum, while holding above 12050 would maintain buying pressure on the DAX. Look for a trade below the 20-period MA at 12050 to indicate a potential break below the 12000 level separating the DAX from negative territory and the lower support at 11960.

Support: 12050/ 11960
Resistance: 12160/12200

Chart (H4)