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DAX Index at Fresh Yearly Highs on Stronger Manufacturing PMI

Dow Jones
Dow Jones

DAX Index started the week with a gap up amid growing optimism over a trade deal between the two biggest economies after Wilbur Ross; the Commerce Secretary said that licenses for US companies to do business with Huawei Technologies would be coming very shortly. Traders digest the third interest rate cut by Fed and better factory activity in China which expanded at its fastest pace since February 2017 as the Caixin Manufacturing PMI came in at 51.7, topping expectations of 51 in October and 51.4 reading in September. Earlier the Germany Manufacturing PMI registered at 42.1 topping expectations of 41.9 in October. The European Monetary Union Markit Manufacturing PMI came in at 45.9 beating expectations of 45.7 in October.

On the Brexit front, Great Britain heads to the general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.

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Dax Index Support and Resistance

DAX bullish momentum holds well with small daily corrections making lower lows and higher highs as the Dax benchmark trades above all major daily moving averages and inside the ascending channel which started back in December 2018.

On the upside where traders focus shifted, the immediate resistance is at 13,171 today’s top, a convincing break above might drive the index up to 13,368 the high from January 29th, 2019. Bullish momentum for Dax benchmark will be intact as long as the index trades inside the ascending channel which started back in December 2018.

On the flip side, immediate support for DAX index stands at 13,019 today’s low, while sellers below that level will target the low from October 23rd at 12,700. Next support level for the index stands at the 50-day moving average at 12,376.

In London the FTSE 100 adds 1.09% at 7,381 as the pound trades at 1.2907,  CAC 40 is 1.14% higher at 5,827. In Wall Street, Dow Jones futures, are 0.48 per cent higher at 27,478, the S&P 500 is 0.41 per cent higher at 3,079 while Nasdaq is 0.50% higher at 8,427.Download our latest quarterly market outlook for our longer-term trade ideas.

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