Monday, June 17, 2019

DAX30 - 17 June 2019


Fundamental Highlights

European stocks came under pressure on Friday as geopolitical tensions rise following the oil tankers attack at the Gulf of Oman. The DAX ended 0.60% lower at 12096 on Friday and reversed gains made in the previous session. Moreover, the US-China trade impasse continues to weigh on the global economic outlook as markets await a resolution between the two nations ahead of their meeting later this month. There are no major economic releases due to provide direction throughout the day and the focus will remain on trade headlines to dictate sentiment and direction for the DAX.

Technical Analysis

The DAX failed to muster enough buying pressure to re-test the resistance zone of 12200/12225 and traded below the 20-period MA where it found support at 12050. Look for a sustained move above 12150 to indicate upward bias and suggest a potential break above the resistance at 12200. Failure to break well above this level would validate the formation of an additional lower high since May’s high high at 12454 this year. Moreover, there is a confluence of support between the 12000 level and the descending trend-line from May’s high which separates the DAX from negative territory. Look for a decline below 12050 to suggest a move below the 12000 level to target the support at 11960.

Support: 12050/12000
Resistance: 12220/12250

Chart (H4)