- Summary:
- Dax index started with healthy gains following the rebound in Asian and Chinese stock markets. Investors shift their attention out of the coronavirus spread
Dax index started with healthy gains following the rebound in Asian and Chinese stock markets. Investors shift their attention out of the coronavirus spread and trying to focus on the fundamentals. The PBOC intervention is helping to stabilize the markets while investors await any positive news from the coronavirus outbreak. Yesterday, the rise in U.S. manufacturing activity boosted investors sentiment.
The European Monetary Union Producer Price Index registered in at 0% in line with forecasts for December. The yearly reading for the PPI index came in at -0.7% also in line with estimates.
The weaker GDP data from the European Monetary Union and the coronavirus spread weigh on Dax. The European Monetary Union Gross Domestic Product (QoQ) came in at 0.1% below the market’s expectations of 0.2% for the fourth quarter. The yearly GDP reading came in at 1% below the forecasts of 1.1%.
Read our Best Trading Ideas for 2020.
Dax Index Technical Outlook
Dax index is 1.08% higher at 13186 as the risk appetite returns to stock markets. The index tested the strong support at 12950 the previous two trading sessions and today managed to rebound, keeping the positive momentum intact.
On the upside, first resistance for the Dax index stands at 13,200 today’s high. More offers above that resistance might emerge at 13271 the 50-day moving average. If bulls break that level the next target would be the top from January 29th at 13374.
On the downside, the first support level will be me at 13131 the daily low. A close below might open the way for the next critical support at 12964 the 100-day moving average. More bids would emerge at the 200-day moving average at 12535.