The DAX index erased earlier gains as traders reacted to the relatively disappointing trade numbers from Germany. The index is trading at €13,090, which is in the same range it was yesterday. Similarly, other European indices like CAC 40 and Stoxx 50 index has fallen by 0.35% and 0.25%, respectively.
In a report released earlier today, the German bureau of statistics said that exports increased by 4.7% in July after rising by 14.9% in the previous month. This increase was slightly lower than the 5.0% that analysts were expecting. In the same month, imports increased by 1.1%, down from the previous increase of 7%%. Analysts polled by Reuters were expecting the imports to rise by 3.3%. Subsequently, the country’s trade surplus rose to €18 billion from the previous €14.5 billion.
These numbers are important because most companies in the DAX index are among the biggest exporters and importers in Germany. These includes companies like Volkswagen, BMW, and BASF that sell goods worth billions of dollars every month abroad.
The DAX index is also wavering ahead of the ECB monetary policy meeting that will start tomorrow. Analysts expect that the bank will leave the main interest rate unchanged and possibly hint at more stimulus in the next few months.
Most companies in the DAX index are in the green with BASF, Heidelbergcement, Merck, Deutsche Post, and Bayer being the best performers. On the other hand, the worst-performers are Delivery Hero, Infineon, and Deutsche Boerse.
DAX Index technical outlook
The DAX index is trading at €13,090. On the daily chart, this price is above the ascending blue trendline. It is also above last week’s low and 50-day EMA at €12,756. Most importantly, the index has formed an ascending triangle pattern.
This means that the price is likely to continue rising as bulls aim for the upper side of the triangle at €13,452. You can use this link to find more about triangle patterns in our free trading course. On the other hand, if the price moves below the ascending trendline, it will invalidate the bullish thesis.
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DAX index technical chart
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