dax
Dax index managed to end in positive territory yesterday as investors sentiment improves following the emergeny interest rate cut by the Fed. The Federal Reserve cut interest rates by 50 basis point to 1%-1.25% in a move to offset the cornavirus impact on the economy. World Health Organization director said novel coronavirus doesn’t transmit as efficiently as influenza but the fatality rate is much higher at 3.4%. Today the global infections rose to 93,000, with China reporting 38 more deaths.
Following a 30 minute conference call, G7 finance ministers from the US, Japan, Germany, France, UK, Italy and Canada noted that the G-7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in response to the coronavirus and support the economy during this phase.
Earlier today, the Germany Retail Sales for January came in at 0.9% below the forecasts of 1%, the yearly reading came in at 1.8% topping the expectations of 1.5%.
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Dax index ended 1.08% higher at 11,985 while earlier on the day the index managed to return above the ascending trendline that started back in early 2019. After the initial euphoria from the interest rate cut from Fed the stocks gaaave up gains and Dax index pierced below the bullish trendline.
On the upside, the immediate resistance for Dax stands at 12,272 the high from yesterday’s trading session. A break above, might test the 12,595 the high from February 27th. A close above might challenge the 200-day moving average at 12637.
On the other side, the first support for the Dax index stands at 11,906 the low from yesterday. In case the sell-off continues the next support zone stands at 11734 the low from February 28th. More bids might emerge at 11624 the low from March 2nd.