DAX index consolidates after the recent correction from yearly highs as markets digest the positive outcome from phase one trade deal between China and U.S and the end of political uncertainty in the UK after the clear victory of Conservatives. In the U.S. all three major indices, the Dow Jones, S&P 500 AND Nasdaq closed to record closing highs.
Today from Germany we had the Gfk Consumer Confidence Survey came in at 9.6, below analysts forecasts of 9.8 in January. The Ifo figures earlier this week showed that there are signs of improvement in the German economy. The German manufacturing sector is in recession; the Manufacturing PMI data for November came in at 43.4, below the analysts’ expectations of 44.5.
Dax 30 trades 0.50% higher at 13,276 as the positive momentum drives global equities to yearly highs. The last two trading sessions the index is hovering around the ascending trendline which supports DAX since the beginning of the year.
On the upside, Dax 30 first resistance stands at 13,276 the daily high. The next resistance will be met at 13,425 the yearly high. If the Dax breaks above then a visit to 13,596 the top from January 22nd 2018 would be a possible scenario.
On the other hand, the index first support stands at 13,201 today’s session low. Next level for bears to watch is the 50-day moving average at 13,071. If the index surpasses the 50-day moving average then the next target to the downside is at 12,541 the 100-day MA.