Tuesday, May 28, 2019

DAX30 - 28 May 2019


Fundamental Highlights

European equities are set to open higher today following a positive session on Monday aided by the European elections which saw mainstream parties garner strong support while a confirmed merger between Fiat and Renault boosted auto stocks. Trading-volume was low as both US and UK markets were closed for public holidays however we should see marked price movement today as Germany published consumer climate figure which fell below estimate. Business confidence figure out of the Eurozone which is forecasted negatively will also have an impact throughout the day. Most importantly, traders should continue monitoring US-China developments to prompt news-driven price action as the trade dispute weighs on the global growth outlook.

Technical Analysis

The DAX Index rose 0.50% to end at 12071 on Monday. Look for price to hold above the 12080 level to signal buying pressure and a move above resistance at 12150 to target resistance at 12215 which if broken, would also break the sequence of lower highs and lows and negate the bearish outlook. However, in order to restore the bullish view, overcoming resistance at 12330 is required. Traders should look to the 20-period MA around 12030 to determine near-term direction as a sustained move below this level may drive price to meet support at 11990 followed by 11940 which would signal further declines towards crucial support at 11850 if broken.

Support: 11990/11940
Resistance: 12150 /12215

Chart (H4)