Friday, July 19, 2019

DAX30 - 19 July 2019


Fundamental Highlights

The DAX extended losses for a second day as it fell by 0.92% at the back of disappointing European corporate earnings. Moreover, the German blue-chip Index’s auto sector fell victim to the stall in US-China trade talks. Today Germany publishes PPI data which is unlikely to impact the DAX today as news of the US shooting down an Iranian drone reignites geopolitical tensions and weighs on global sentiment. Meanwhile, upside support can be found in reaction to yesterday’s ramped up rate cut expectations following a speech by Fed member John Williams.

Technical Analysis

The DAX posted a sharp loss of 113 points to end at 12227 on Thursday. The price tagged the 50-day MA at 12200 before edging higher as the RSI reading exited the oversold territory. Failure to hold above 12200 would lead the DAX towards the lower support at 12165 separating the DAX from further downside pressure. Meanwhile the 20 and 50-period MA are providing a dynamic zone of resistance around 123340/12370 on the DAX’s short-term downtrend. Look for a sustained move above the 12300 level to indicate buying pressure and test the mentioned resistance zone.

Support: 12200/12165
Resistance: 12320/12375

Chart (H4)