Dax index slide in early trading as investors digest the recent developments on the China – USA trade war after the negotiations scheduled for the weekend cancelled.
Worst than the expected economic contraction in Japan also weigh on sentiment. DAX index is trading lower for the third straight day as the lack of corporate and economic news and the summer holidays in Europe keeps investors await from any major moves as the indices are trading close to five-month highs.
New quarantine measures in Europe as the new infections continue to increase in the continent increase the fears for a pause in the economic rebound.
As the economy in Europe contracted by 12.1% in the second quarter investors betting on fast economic recovery, which will be supported by a coronavirus vaccine and a new stimulus package in USA that will offset the negative impact in the COVID-19 battered economy.
Deutsche Bank, Henkel and RWE are giving up almost one percent, while Infineon is 1.56% higher at 22.09, Siemens is 0.53% higher and Adidas adding 0.34% at 266.80.
Dax Index Daily Technical Analysis
Dax index is 0.11% lower at 12,912 as investors looking for the next catalyst that will give clear signals for Dax next move. The previous week a strong rebound in Dax stalled just below the rising trend channel. Bulls would love a return inside that channel that could drive Dax above the 13,000 mark.
The daily low at 12,847 would provide minor support for the index, while a break below might test 12,794 the low from Friday. Next strong support is at 12,593 the 50-day moving average.
On the upside, immediate resistance stands at 12,960 today’s top. More sellers would emerge at 13,087 the high from August 13. The next hurdle for Dax index would be met at 13,324, the high from July 21.
Dax Daily Chart
