DAX Index started the day higher, adding 0.21% at 13,207 on improved sentiment after Larry Kudlow said that China and US are close to a trade deal. German economy returned to growth in the 3Q, with the GDP rising by 0.1%, quarter-on-quarter. In the 2Q quarter, the economy shrank by 0.2%.
DAX index recovers some of yesterday’s losses as investors risk appetite. Dax momentum is bullish despite yesterday’s correction as the Dax index trades above all major daily moving averages and inside the ascending channel which started back in December 2018. Dax index is trading close to overbought levels as the RSI 14 hovers at 67.03 a level that might trigger profit-taking.
On the upside immediate resistance stands at 13,261 today’s top, a convincing break above that resistance level might drive the index up to 13,368 the high from January 29th, 2019. Bulls control the momentum for Dax index as long as the index trades inside the ascending channel which started back in December 2018.