DAX trades higher today adding 0.11% at 12,355 despite the disappointment that came from Germany as the IFO Expectations came in at 90.8, below market consensus of 91.8 for September. On the other hand the IFO Business Climate came in at 94.6 topping expectations of 94.5 in September, and the Current Assessment came in at 98.5 also beating expectations of 97.
The German main stock index has gained over 10% since the August lows and 16.99 % 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 12,340 today’s low while bears need a break below 12,117 the 100-day moving average in order to regain control for the short term and continue the downward move to 12,044 the 200-day moving average. On the upside, the immediate resistance is at 12,375 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.