Thursday, May 23, 2019

DAX30 - 23 May 2019


Fundamental Highlights

A lack of US-China developments yesterday allowed the DAX to extend Wednesday’s gains enabled by the US’s easing restrictions on Huawei. While there has been news suggesting the US is considering blacklisting additional Chinese companies and that the two nations may meet next month, there is no valid confirmation of either to direct the DAX. On economic news, unlike yesterday, today’s batch of data is likely to provide European indices with direction. Germany and the Eurozone publish services and manufacturing PMI reports and should reflect the Eurozone’s economic performance. Apart from the data, the ECB publishes its monetary policy meeting minutes and should be taken into consideration alongside US-China trade developments to influence market sentiment.

Technical Analysis

The DAX ended 0.21% higher at 12168 on Wednesday after reaching its intraday high at the 20-day MA around 12200. The index’s failure to edge above the 20-day MA may be an indication of a bearish development which is to be confirmed if the DAX breaks below the 12000 level to target the 50-day MA around 11950. While the short-term rising trend line provided support in yesterday’s session, it may be broken today should price action sustain below the 12080 level to target the lower support at 12000. A move above 12250 would be required to re-test the 12330 level which would restore the bullish view if broken.

Support: 12000/11950
Resistance: 12250 /12330

Chart (H4)