Dax index starts higher the trading session a day after it suffered the worst session since the financial crisis in 2008. Crude oil slumped yesterday the most since the Gulf war in 2008 amid a price war between Russia and Saudi Arabia. Investors sentiment improves as President Donald Trump will hold another press conference later on the day to discuss measures in helping the economy amid the coronavirus outbreak. Japan also plans to spend 430.8 billion Yen in the second package to off-set the coronavirus outbreak impact. Economists now expect Germany to enter a technical recession this year.
The rebound is helped today by Infineon Technologies AG which is 627% higher at 16.79, Deutsche Post AG is 5.95% higher at 23.95, Lufthansa AG +5.03% at 11.07 and Volkswagen +4.95% at 138.24.
Read our Best Trading Ideas for 2020.
Dax index is 2.55% higher at 10,898, as the index attempts a recovery from January 2019 lows. The Dax technical outlook is clearly bearish and only a move that will close the yesterday’s gap down can cancel the recent negative momentum.
On the upside, the initial resistance for Dax stands at 10,905 the daily high. A break above might test the 11,007 high from yesterday’s trading session. A credible close above might challenge 11437 the low from Friday’s trading session which will also signal the close of the gap.
On the other side, the initial support for Dax stands at 10,684 the daily low. In case the sell-off accelerates the next support zone stands at 10555 the low from yesterday’s trading session.