DAX Retreat from 4-Month Highs
DAX retreat today after an impressive rally for eight sessions in a row giving up 0.76% at 12,374 as oil prices spike to 4-month highs after the drone attack to major oil facilities in Saudi Arabia that will cut world oil supply by about 5%. ECB last week, cut its deposit interest rate at -0.50% and launched a new round of monthly bond purchases. The German main stock index has gained over 10% since the August lows and 17% in 2019.
DAX positive momentum from August 15th lows is intact despite today’s correction as the index hovers at six-week highs. On the downside, immediate support for the DAX index stands at 12,362 today’s low while bears need a break below 12,113 the 100-day moving average in order to regain control for the short term and continue the downward move to 12,042 the 200-day moving average. On the upside, the immediate resistance is at 12,419 today’s high and then at 12,592 the high from July 25th, a convincing break above might drive prices to yearly highs at 12,653. Positive momentum will gain traction if Dax return inside the ascending channel which started back in December 2018.