DAX has been trading sideways for the better part of the week after moving past 15,000 to hit a new record-high of 15,382. The index’s overall uptrend is a sign of investors’ optimism in the growth of Europe’s largest economy despite the rising coronavirus cases.
However, the call for tougher lockdown measures have exerted pressure on DAX. Chancellor Angela Merkel has supported the proposed move. Besides, the country’s trade balance has come in lower than expected. At 19.1 billion, the figure missed the estimated 20 billion.
Among the gainers are Adidas, MTU Aero, and Delivery Hero at 1.36%, 2.07%, and 0.77% respectively. On the other hand, Deutsche Wohnen, Linde PLC, and Covestro’s shares are down by 1.11%, 1.13%, and 1.00% in that order.
DAX Index Technical Outlook
On a four-hour chart, DAX is trading along the 14-day exponential moving average and slightly above the 28-day EMA. After reaching an all-time high of 15,382 at the beginning of the week, the index pulled back and has been trading sideways for four consecutive sessions. On Friday, it was down by 0.05% at 15,200. Its current support level is at 15,155.
The bulls in the market are likely to push DAX back to its all-time high of 15,400. The index will probably find resistance at this level before breakout to the upside to test 15,600. On the flip side, a move past its current support level will have the next target at the psychological level of 15,000.