Wednesday, August 14, 2019

DAX30 - 14 August 2019


Fundamental Highlights

The DAX ended 0.60% higher on Tuesday as positive trade headlines provided support. Market participants took the good news in the bad as President Trump announced that the imposing of proposed tariffs on particular Chinese goods would be delayed. Separately on economic data, ZEW economic sentiment figures out of Germany and the Eurozone fell well below expectations and highlights the region’s economic slowdown which would support a rate cut from the ECB. Today, the release of German Q2 GDP figure came in line with expectations and showed the economy contracted by 0.1%. We have yet to see later today whether the Eurozone’s Q2 GDP figure disappoints in the same manner. Moreover, industrial production data from China came below expectations and further weakens sentiment. Apart from the data, expect geopolitical and trade headlines to influence price action on the DAX.

Technical Analysis

The DAX gained 70 points to end at 11750 on Tuesday. The price managed to breach the 50-period MA and reach towards the resistance at 11840. Look for a decline below the 11720 level near the 50-period MA to indicate selling pressure and lead the Dow to test the 200-day MA at 11660. On the other hand, a sustained move above 11720 would maintain buying pressure while a trade through 11840 would be required to target the higher resistance at 11930 followed by 11960.

Support: 11720/11660
Resistance: 11840 /11930

Chart (4H)