DAX Index Forms Doji at Trend Line Support After A Drop German Unemployment
Like most equities markets, the DAX Index has been weighed down by concerns of the coronavirus. However, today’s employment data from Germany helped stall the sell-off on Germany’s stock index. The DAX Index CFDs slid to as low as 13,157.7 earlier today but retreated to 13,206.2 when the unemployment change report showed a drop 2,000 for December. It was expected that 5,000 people claimed for unemployment benefits during the month. This decline could be an indicator of resilience in Germany’s labor market.
Consequently, a doji materialized on the hourly chart of DAX Index CFDs. On its own, this candlestick is considered a neutral indicator. However, it is worth noting that the doji materialized at a support level around 13,200. Connecting the lows of December 3, December 10, January 6, January 8, and January 28 on the daily chart, we can see that there is a rising trend line support at this price. It could indicate that sellers on the DAX index are running out of steam.
A bullish candlestick closing above the prior candle 13,245.0 could trigger a rally to yesterday’s highs around 13,363.0 where the 100 SMA is. On the other hand, a bearish close below today’s low at 13,158.5 may mean that the DAX Index could fall to its January 6 lows at 12,988.0.More content