The DAX Index recovered its losses on Friday as it rose 0.27% higher to end at 12315 supported by higher moves on Wall Street due to a positive 1st quarter GDP reading, despite mixed earnings reports out of German corporations. Economic release of the Eurozone’s business and consumer confidence figures may impact intraday price action.
The DAX Index found support at the 20-period MA as it edged higher to end above the trend line resistance on Friday. Nonetheless, the price has yet to sustain above the trend-line around the 12300 level to suggest an advance towards the resistance at 12400. Given that the daily RSI reading remains overbought, there is potential for a deeper pullback on the Index. Should price extend past the major resistance at 12330 whilst failing to record a higher high on the RSI, this may signal the pullback development towards lower support levels at 12250 and 12200.