Friday, May 17, 2019

DAX30 - 17 May 2019


Fundamental Highlights

The DAX posted strong gains on Thursday as it rose 1.74% and closed at 12310. Economic data was in favor of the upside move as Eurozone trade surplus widened to 22.5 billion. On the global trade front, Amidst the ongoing US-Sino trade dispute, the decided delay in US auto tariffs on the EU meant another headwind avoided for the time being which leaves room for German blue-chip automakers to rise. Nonetheless, trade tensions between the US and China could hurt market sentiment should China react to the US’s provoking decision to ban Chinese telecom Huawei. The unfolding of events between the US and China will dominate markets’ attention and may leave inflation figures out of the Eurozone today with little influence on the DAX.

Technical Analysis

The DAX managed to break through the 50-period MA at 12090 followed by the resistance at 12200 before ending at 12310. Holding above 12200 indicates buying pressure while overcoming resistance at 12330 would restore the bullish view on the DAX and target higher resistance levels at 12400 and 12450. Moreover, the 20-period MA is looking to cross over the longer 50-period MA suggesting that the short-term downtrend may have come to an end. Should price decline below the 12200 level, look for support at the 20-period MA around 12090 to maintain the uptrend on the DAX.

Support: 12200/12090
Resistance: 12330 /12400

Chart (H4)