The Dax Index is following in the footsteps of its Asian counterparts and trading higher today. Germany’s stock index is up by over 4% or 350 points as it trades around 9,100.
Lufthansa is leading gains in today’s European session. The airline company is in the green by 5.48%. In second is Munich RE with a floating profit of 5.43%. Meanwhile, Siemens rounds up the top three performers at 5.22%.
There have been no significant updates on the coronavirus which has been the main driver of market sentiment as of late. This could help explain the fragile recovery we’re seeing on the DAX today.
Later, at 10:00 am GMT, the German ZEW Economic Sentiment report is due. It is expected to print at -29.7 for the month of March. A better-than-expected figure could help boost the DAX while a negative reading could weigh it down.
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DAX Index Outlook
On the monthly time frame, we can see that the DAX Index is testing support at its previous lows around 9,125.0. This price previously served as support for Germany’s stock index in February to November 2014, and in February and June 2016.
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A closer look at the 4-hour time frame, however, shows that the DAX index may soon test near-term resistance around 9,375.2. This price coincides with the falling trend line resistance when you connect the highs of March 4, March 6, March 10, and March 13. Reversal candlesticks around this level could mean that the DAX Index may soon resume its fall to its recent lows at 8,2262.
On the other hand, a strong bullish close above the trend line could mean more upside potential. The next resistance level for the stock index could be at 9,990.0 where it peaked on March 13.More content
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