dax
Dax index started sharply lower as EU leaders failed to calm markets while the Gilead drug failed in the clinical trial as a treatment for coronavirus patients. Dismal economic data continue from around the globe. The Germany April Ifo business climate index dropped to 74.3 below the expectations of 79.7. The Ifo expectations also dropped to 69.4 below the market consensus of 75; the previous reading was at 79.7. The current assessment came in at 79.5 below the expectations of 80.5. The data are at record lows and followed record lows PMI’s data.
Yesterday, Germany’s April flash manufacturing PMI came in at 34.4 below the expectations of 39.0. The Services PMI came down to 15.9 below the expectations of 28; the previous reading was at 31.7. The composite PMI also slumped to 17.1 well below the expectations of 28.5; the previous reading was at 32.
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Dax index is 1.59% lower at 10,345, as the rebound from the March lows stalled below the 50-day moving average. Dax index technical picture is bearish and also lost now the short term positive momentum.
On the downside, initial support for Dax stands at 10,299 the daily low. If the selling pressure persists, the next support is at 9,838 the low from April 6. Below 9,838 the next support will be met at 9,350 the low from April 2.
On the contrary, first resistance for the index stands at 10,363 the daily top. A move above 10.363 would target yesterday’s highs at 10,603. A move higher might challenge 10,873 the 50-day moving average.