Dax index jumped higher on Wednesday mirroring Wall Street amid positive sentiment after promising results from Moderna’s coronavirus vaccine. The results from early-stage trials for the coronavirus vaccine from Moderna showed immune responses and no safety issues in 45 participants.
Better than expected bank earnings in the USA also support equities, even the earnings expectations have been downgraded several times during the coronavirus crisis.
Investors also speculate that the E.U. meeting later on the week will finalize the details for the 750 billion euros recovery fund that will boost the coronavirus battered economy.
On the U.S. – China trade war front, President Donald Trump signed a bill that would penalize banks doing business with Chinese officials and removed Hong Kong special trade privileges. China immediately announced that it would impose retaliatory sanctions on U.S. individuals and entities.
Dax index getting a hand today by Covestro +2.31% at 36.72, SAP is 0.43% higher at 135.32. Infineon is 0.34% higher at 22.24. Adidas is 1.15% higher at 238.50, Siemens is 0.33% higher at 110.26 and BMW is 0.15% higher at 58.32.
Dax index is 0.89% higher at 12,809, as the index gapped up today reaching monthly highs as the ascending channel that started since the March lows drive the index safely to higher levels. The technical picture is bullish for the Dax index and only a break below the 200-day moving average can cancel the positive momentum.
On the upside, first resistance for the Dax 30 index is at 12,827 the daily top. A break above 12,827 might test 12,918 the high from June 8. A break above 12,827 would open the way for 13,248 the high from February 24.
On the contrary, the initial support for the Dax 30 stands at 12,773 the daily low. If the Dax index breaks below 12,773, then the next support is at 12,518 the low from yesterday’s trading session. If sellers continue then the next target will be met at 12,165 the 200-day moving average.
