DAX Index Gives Up Earlier Gains and Falls to Critical Support

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Written By: Angeline Feliciano

Apr 16, 2020, 19:04 BST 19:04

DAX index

Summary:

The DAX Index gave up its earlier gains in today’s trading as buyers lost their momentum. With the index testing critical support, can it hold on?

The DAX Index gave up its earlier gains in today’s trading as buyers lost their momentum. Germany’s stock index began the European session with a 1.30% uptick only to close with a measly 0.21% gain for the day at 10,301.540. Meanwhile, DAX Index CFDs fell from its intraday high of 10,445.3 to trade at 10,247.9.

Deutsche Boerse led gains with a 4.15% uptick while Fresenius Medical Care enjoyed a 3.42% gain. Meanwhile, Merck rounded up the top three at 2.82%. On the contrary, HeidelbergCement lost the most by 2.90%. Airline company Lufthansa was today’s second-biggest loser at 2.27%, followed by Allianz which lost 1.59%.

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DAX Index Outlook

On the 4-hour time frame, it can be seen that the DAX Index CFDs is testing the rising trend line for support (from connecting the lows on March 18, March 23, and April 2). If there are enough buyers in the coming trading days, we could soon see the DAX Index rally to its recent highs at 10,810.0.

It’s also worth pointing out that the trend line support coincides with the area around the neckline of a head and shoulders pattern. This is considered as a bearish reversal indicator. And so, a strong close below the neckline at 10,157.8 would also effectively break the trend line support too. This could trigger a bigger sell-off to April’s lows at 9,310.8.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.