Dax index fell in early trade mirroring heavy losses in Wall Street and Asia amid rising concerns about the impact in the economy of the coronavirus outbreak. A positive surprise came today form the German economy. The German Factory Orders increase by 5.5% in January, beating the expectations of 1.4%, the previous reading was at 6.6%. Traders await later today the US non-farm payrolls report, for fresh clues on the health of the economy.
Travel, banks and leisure shares were the biggest fallers in Europe once again. Deutsche Bank AG is 3.83% lower at 6.77, Deutsche Lufthansa AG is 4% lower at 11.04 while Volkswagen AG is 3.59% lower at 145.02. Dax index has lost over 12% in 2020, and over 15% from the highs on February 20.
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Dax Index Resistance and Support
Dax index is 2.57% lower at 11,639, making fresh 2020 lows as the pressure in German stocks accelerates, and the index started with a gap down the session. The Dax technical outlook is bearish after yesterday the index failed to break above the resistance at the upward trendline.
On the downside, the first support for the Dax index stands at 11,603 the daily low. In case the sell-off accelerates the next support zone stands at 11557 the low from August 26. More bids might emerge at 11459 the low from August 16.
On the upside, the intraday resistance for Dax stands at 11,769 the daily high. A break above might test the 12,195 the high from yesterday’s trading session. A credible close above might challenge the 12276 high from March 3.
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