The DAX is pushing higher in early European trading as a reflection of a global bounce in equities. The rise back up in equities first occurred yesterday when US equities ended the day on a strong positive note. The rebound in global equities is mainly attributed to a report by the Financial Times claiming that the US and China are working towards reaching a trade agreement during the G20 summit later this month.
The DAX bounced of the 11300 support level while also forming a double bottom reversal pattern. Following the bounce, prices also managed to break above the 13-period moving average signaling a possible shift in the momentum of the index. For now, traders should be targeting the 50-period moving average and if that is broken then the next key resistance level will be at 11551.
Support: 11310 / 11050
Resistance: 11551 / 11660