Dax index trade lower for the fourth straight session as investors worry on the rising trading tensions between USA and China. President Trump said that would put further pressure on Chinese companies doing business in the USA and will stop the access of Huawei to available chips.
The U.S. have banned TikTok and WeChat in the country. USA and China cancelled the meeting to discuss the progress of the phase one trade deal, and they have not announced any new date for the discussions.
The rising number of new infections in some European countries and new restriction measures might pause the recent economic recovery, while the retail sales data from the USA and China have disappointed investors.
Among the worst performers in Dax are, Wirecard -5.19% at 1.16, Bayer is -0.82% at 56.80, Beiersdorf is -0.63% at 94.86, and BMW is -0.86% at 57.385. On the other hand, Covestro is 1.78% higher at 38.82 and RWE is 0.12% higher 34.58.
Dax Index Analysis
Dax index is 0.25% lower at 12,887 as the correction from previous week highs continues. Even the index trading lower for the fourth consecutive session, the positive outlook remains intact.
Only a break below the 50-day moving average at 12,599 would cancel the bullish picture.
Initial support for Dax is at 12,807 today’s low. More bids, as I mentioned above, wait at 12.599 the 50-day moving average. Above that, the next support zone stands at 12,359 the low from August 3.
On the contrary, first resistance for the Dax index is at 12,891 the daily top. More sellers would emerge at 12,987 the high from August 14. The top from August 12 at 13,106 is the next resistance.