Tuesday, June 25, 2019

DAX30 - 25 June 2019


Fundamental Highlights

The DAX extended Friday’s losses and ended 0.53% lower on Monday amid escalating US-Iran tensions as President Trump signed an order to impose new sanctions on Iran. On corporate news, the German auto company Daimler issued a profit warning which sent shares lower and weighed on the DAX.. Separately on economic data, the business climate index continued to decline as it hit its lowest level since 2014 and reflects weak business sentiment in Germany. There are no major economic releases out of the Eurozone today and the DAX may pick up cues from Wall Street as the US publishes consumer confidence report for June. Meanwhile markets should remain headline driven as they await US-China trade developments ahead of the G-20 summit.

Technical Analysis

The DAX traded 65 points lower as it gradually drifted below the support at 12280 to meet the 12240 level before ending at 12274. The decline below 12280 makes the DAX vulnerable to further short-term weakness as futures are pointing lower this morning and leading price towards the support zone of 12225/12200. Look for a decline below 12200 to drive the index lower towards the support provided by the 50-day MA around 12140. Meanwhile the 20-period MA currently around 12310 should act as dynamic resistance as price drifts lower.

Support: 12200/12140
Resistance: 12280/12360

Chart (H4)