Dax index started with a cautious mood on Monday morning giving up 0.17% at 13490 amid worries on coronavirus spread. The partial opening of factories in China improved the sentiment but the number of confirmed cases and deaths rising. On Monday there are over 40,000 confirmed coronavirus cases and the death toll is over 900.
On the data front the European Monetary Union Sentix Investor Confidence registered in at 5.2 topping the expectations of 4 in February. The previous week, the Germany Industrial Production was a big miss. The December reading came in at -3.5% below the forecasts of -0.2%. The yearly reading for Germany Industrial Production also was a big miss, as it came in at -6.8% below the estimates of -4%.
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Dax index is 0.23% lower at 13483 as the correction from recent highs continues for the third consecutive session. On the technical side the outlook is still bullish despite the recent pullback.
In case of further selling pressures, the first support for Dax index will be me at 13445 the daily low. A close below might open the way for the next support level at 13300 the 50-day moving average. If the bears break that level next support stands at 13131 the low from February 4 session.
On the upside, the initial resistance for Dax 30 stands at 13,501 today’s high. Yesterday’s high at 13553 is the next resistance area. In case of a bullish breakout might test the next resistance level at 13608 the high from February 6th.