The DAX rose 0.57% on Thursday ahead of the Easter break holiday and ended at 12,222. Manufacturing PMI data out of both Germany and the Eurozone came slightly below estimate and remain in contractionary period, highlighting the gloomy outlook for the region’s slowing economy. The weaker figures weighed on the euro which is negatively correlated to European equities, thereby aiding a lift in the DAX.
The DAX index overcame resistance at 12160 to end at 12222 on Thursday and now faces trend line resistance from January 2018 which leaves room for the price to drift higher towards resistance at 12300. Given the rally on the DAX, bullish momentum may uphold the upside move towards 12300 before we can see any short-term weakness. The bullish trend remains intact and a move below 12090 would be required to indicate a bearish bias.