DAX index retreat today giving up 0.37% at 13,285 as traders are taking some profits off the table. German retail sales for November scheduled for release later. In the USA, we await the data for foreign trade, MNI’s regional Chicago Purchasing Managers’ Index and the NAHB’s Pending Home Sales.
2019 was an excellent year for stocks in Germany and around the globe. Equities boosted by positive developments in the China – USA trade tensions, the Boris Johnson win in general elections in UK. And the low-interest rates environnnment from the major central banks.
Bulls are in control of the Dax index despite today’s pullback. The stock index is heading into the new year with gains over 25% in 2019.
On the downside, now the Dax index immediate support stands at 13,246 today’s low. The next resistance level will be met at the 50-day moving average at 13,114. The 50-day moving average support the index since September 2019. The next level on the downside for bears is the 12,800 the low from October 31st.
On the upside, the first resistance is at 13,316 today’s high. If the index breaks above the next level to watch is the 13,385 the high from December 27th which guards the yearly high at 13,425.85.