The DAX Index rose 0.43% on Wednesday as solid economic data out of China uplifted sentiment. Moreover, trade surplus increased and inflation remains subdued in the Eurozone which is supportive of European equities. Today will be the test of whether the bullish momentum will hold as Germany and the Eurozone publish Manufacturing PMI figures which have recently highlighted a deteriorating manufacturing sector due to global trade uncertainty and slowing growth.
The DAX ended at 12153 on Wednesday after having reached resistance at 12200. The Index now faces the trend line resistance from January acting as a barrier for further gains towards resistance at 12250. Should the 20-period MA around 12090 hold, buying pressure remains intact with a trade above 12200 coupled with an RSI reading matching the higher price action to indicate bullish continuation. However, if the support at 12090 fails , the index should drift towards lower support levels at 12038 and 12000.