DAX
Dax index retreat today after yesterday hit fresh historical high at 13642. Dax is 0.29% lower at 13,475 as investors shift to safe-haven assets, as China moves to lock-down travel from Wuhan and Huanggang cities in an effort to contain the spread of the coronavirus.
Traders will follow today the ECB meeting and decision later today. No surprises are expected from this policy meeting. ECB President Christine Lagarde expected to announce a strategic review for the rest of the year, and investors will look for any hints about the ECB future moves.
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Dax index started the session lower today as investors book some prooofits after the index yesterday hit all-time highs. Bullish momentum is intact despite today’s pullback.
On the downside. immediate support for the index will be met at 13,412 today’s low. If the DAX index breaks below that level, the next support zone stands at 13,366 the low from January 14. If Dax breaks below the 50-day moving average at 13,272, the bullish momentum might be cancelled.
On the upside, first resistance for the Dax stands at 13,486 today’s high. The record high from yesterday’s session in 2018 at 13,642 is the next strong resistance.
All in all the technical outlook is clearly bullish for DAX and only an escalation in coronavirus and geopolitical risks can cancel the momentum.