Wednesday, February 27, 2019

DAX30 - 27 February 2019


Fundamental Highlights

The DAX index rose 0.45% in Tuesday’s session as the extensions of the March 1st trade deadline continued to buoy global sentiment despite little news on the progressions of trade negotiations. However on the domestic front, German numbers point to an economic slowdown while yesterday’s consumer confidence report remained stagnant at 10.8. Investors will remain cautious as they await cues from Sino-US trade progress and Brexit headlines to influence price action.

Technical Analysis

The DAX index traded lower to meet support at 11426 before closing higher around the resistance at 11540. Bullish bias remains intact as buyers attempt to push price past the resistance at 11540 to bring the 11600 area into play. Failure to push past this level may keep price ranging above the 20-period MA before selling pressure takes it back towards the support at 11426. Meanwhile the 50-period MA at 11380 acts as key support and a break below it would be needed to negate the uptrend on the DAX.

Support: 11480/ 11380
Resistance: 11540/ 11670

Chart (H4)