- Summary:
- Like most major equities markets, the DAX Index traded higher in today's trading as risk appetite fueled its rally. However, it seems to be losing steam.
The DAX Index is trading more than 3% above its opening price at 10,397.00. However, the German stock index is well off its daily highs which could suggest that its rally could be losing steam. Earlier, it went as high up as 10,360.63 which was equivalent to a 4.34% uptick.
Leading gains in today’s trading is industrial engineering and steel production company, Thyssenkrupp. It is currently up by 11.32%. It is then followed by chemical company Covestro with a 6.16% uptick. Deustche Bank then rounds up the top 3 gainers with 5.74%.
Risk appetite has been pushing equities higher in today’s trading. The market’s risk-on sentiment is fueled by the slowing pace of confirmed cases and death tolls across Europe and the US.
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DAX Index Outlook
On the 1-hour time frame, it can be seen that DAX Index CFDs closed at support on the rising trend line (from connecting the low of April 3 and today’s Asian session low). This suggests that the DAX Index could be on its way to retest today’s highs at 10,590.5.
On the other hand, the 4-hour chart suggests that the stock index may be on its way to trading lower. A couple of reversal candles have materialized around the 200 SMA which could suggest the presence of sellers. Near-term support for the DAX Index is at 10,012.8. This price offers a confluence of support with the rising trend line (from connecting the lows of March 19, March 23, and April 3), 50% Fib level (drawing from the low of April 3 to the high of April 7), and previous highs.