DAX Index started higher the trading session on positive news from the Brexit front. Investors yesterday dump German stocks as the slowdown spread around the globe. Markets await the restart of trade negotiations between US and China on Thursday although the expectations are low for a deal this week. The German main stock index has gained over 8% since the August lows and 14,25% in 2019.
Dax index is 1.39% higher at 12,135 having hit the daily low at 11,953 and the daily high at 12,165 boosted by adidas +2.93%, Infineon +1.33, Wirecard AG +2.69%, Siemens AG +1.75%, SAP SE +1.62%, and Bayer +1.99%.
DAX index trades close to daily high as the index attempts to build on positive momentum with a break above the 100-day moving average. Today’s move enhance the recent positive momentum which started from August 15th lows (11,275) as the index breached the 50-day moving average and as of writing test the resistance at the 100-day moving average, which if breached will have positive implications for DAX. On the upside, the immediate resistance is at 12,165 today’s high and then at 12,492 the high from October 1st, a convincing break above might drive prices up to yearly highs at 12,653. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018. On the downside, immediate support for DAX index stands at 11,953 today’s low, while sellers below that level will target the 200-day moving average at 11,816.
In London the FTSE 100 adding 0.50% at 7,179 as the pound trades at 1.2219, CAC 40 is 0.95% higher at 5,508. In Wall Street, Dow Jones futures, are 0.80 per cent higher at 26,335, the S&P is 0.85 per cent higher at 2,918 while Nasdaq is 1.00% higher at 7,696.Download our latest quarterly market outlookfor our longer-term trade ideas.
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