The DAX Index resumes trading today after having ended higher at 12222 on Thursday despite the lower readings in Germany’s Manufacturing PMI report. With no major economic releases for the day, earnings out of Wall Street will be markets’ main focus and the upward bias on the DAX should be maintained by US-China trade hopes and a lack of developments on the EU-US trade conflict which pose a threat to the Eurozone’s economy.
The DAX has grinded higher since breaking and holding above the 12,000 mark and is now looking to target the 12300 level coinciding with the trend line resistance from January 2018. The Index’s strong performance is further exhibited in the daily RSI reading having entered the overbought territory, thereby leaving potential for an aggressive turnaround with a break below 12090 required to indicate a bearish development. Meanwhile, maintaining the trend line support on the RSI reading whilst holding above the 20-period MA around 12160 remains indicative of price action and holds the bullish trend intact.