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DAX Index Forms Doji at Trend Line Support After A Drop German Unemployment

Dax index Performance

Like most equities markets, the DAX Index has been weighed down by concerns of the coronavirus. However, today’s employment data from Germany helped stall the sell-off on Germany’s stock index. The DAX Index CFDs slid to as low as 13,157.7 earlier today but retreated to 13,206.2 when the unemployment change report showed a drop 2,000 for December. It was expected that 5,000 people claimed for unemployment benefits during the month. This decline could be an indicator of resilience in Germany’s labor market.

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Consequently, a doji materialized on the hourly chart of DAX Index CFDs. On its own, this candlestick is considered a neutral indicator. However, it is worth noting that the doji materialized at a support level around 13,200. Connecting the lows of December 3, December 10, January 6, January 8, and January 28 on the daily chart, we can see that there is a rising trend line support at this price. It could indicate that sellers on the DAX index are running out of steam.

A bullish candlestick closing above the prior candle 13,245.0 could trigger a rally to yesterday’s highs around 13,363.0 where the 100 SMA is. On the other hand, a bearish close below today’s low at 13,158.5 may mean that the DAX Index could fall to its January 6 lows at 12,988.0.