dax
Dax index opens slightly lower as the concerns in the coronavirus front rise after the U.K. administration announced that it would quarantine tourists who visited Spain for two weeks, amid the rising coronavirus cases in the country, while Hong Kong banned dine-in services starting Wednesday. Victoria state in Australia considering the extension of the six-week lockdown.
Travel and entertainment stocks are under pressure today with TUI giving up over 14%, and Lufthansa is 6% lower, while Deutsche Bank and Basf are almost one percent lower. On the other hand, technology stocks provide some support for the index. SAP is 2.83% higher at 139.54, and Infineon Technologies is 1.33% higher at 22.08.
Meanwhile, the rising tensions between the USA and China also weighed on investors sentiment. Beijing ordered the closure of U.S. consulate in Chengdu in retaliation, after the U.S. administration closed the Chinese consulate in Houston the previous week.
Dax index is 0.04% lower at 12,844, trading lower for the third consecutive trading session. The index despite the recent correction remains inside the ascending channel that started since the March lows. The technical outlook is bullish, and the pullbacks should be considered as a buying opportunity.
On the downside, the initial support for the Dax stands at 12,811 the daily low. If the Dax 30 breaks below 12,811 then the next support is at 12,555 the low from July 14 trading session. The next support will be met at 12,294 the 50-day moving average.
On the other hand, first resistance for the Dax 30 is at 12,889 the daily top. A move above 12,889 might challenge 13,218 the high from July 23. A break above that level might open the way for 13,317 the high from July 21.
