- Summary:
- DAX Index starts the session higher today, as investors are confused about the recent developments in US-China trade negotiations.
DAX Index starts the session higher today, as investors are confused about the recent developments in US-China trade negotiations. The index supported by stronger manufacturing PMI reading. The Germany Markit Manufacturing PMI came in at 43.8 topping forecasts of 42.9 in November. On the other hand, the Services PMI came in at 51.3 below expectations of 52 in November, while the Composite PMI came in at 49.2, below forecasts of 49.4.
The German economy returned to growth in the 3Q, with the GDP rising by 0.1%, quarter-on-quarter. In the 2Q quarter, the economy shrank by 0.2%.
Dax Index Resistance and Support
Dax index adds 0.73% at 13,234and close to daily highs after thhhe stronge manufacturing PMI; the momentum is bullish for the index despite the recent correction as the Dax trades above all major daily moving averages and the price holds inside the ascending channel which started back in December 2018. Recent pullback helped the index to exit from the overbought area.
Bulls now need to break above the daily high at 13,244 while a convincing move above that resistance level might drive the Dax index higher 13,375 the high from November 19th. A trade deal between China and US might be the catalyst for fresh yearly highs.
On the other hand, the index will find support at today’s low at 13,142.60 while the ascending trendline crossing at 13,101 is a critical point and could provide some extra support. In case that the Dax index breaks below the ascending trendline more bears will join the action and might target the 50-day moving average at 12,707.