Monday, December 17, 2018

DAX30 - 17 December 2018


Fundamental Highlights

European shares ended last week lower following disappointing PMI data from the Eurozone and Germany, EU’s largest economy. And adding to that is China’s weak industrial production and retail sales figures which have strained the economy leading to further global growth concerns. Germany's stock market index is susceptible to China’s current status as it relies on the country as one of its top export destinations. The gloomy figures ignited a skepticism over the near future considering that the unresolved trade dispute hasn’t yet been completely factored into China’s slowdown. Today’s EU CPI is highlighted as it further reflects the progress of the Eurozone.

Technical Analysis

The German index falls 0.54% with its weak economic data shaking investors’ confidence. The overall tone remains bearish whilst the index approaches a neutral stance in the near term ranging between 10947 and 10783 as a decisive EU CPI awaits. The 20 MA and 50 MA converge suggesting the index may test the 11,000 mark before falling to its recently turned support level around 10760.

Support: 10783 / 10728
Resistance: 10947 / 10999

Chart (H1)