DAX Index Retreats from Historic Highs Amid Lack of Data; German ZEW Ahead
The DAX Index is trading slightly lower in today’s trading. Without any economic data on deck, Germany’s blue-chip stock index is down by around 15 points at 0.11% at 13,510.72.
Wirecard continues to lead gains as it is up by 0.94%. The technology and financial services company has been consistently one of the best performers in the DAX Index when it announced that it would be replacing its chairman. Wulf Matthias was previously criticized for resisting calls for audit despite allegations of fraud and creative accounting. It was announced earlier this month that he will be succeeded by Thomas Eichelmann.
On the other hand, Deutsche Bank is the worst performer so far for the day. The stock is currently down 1.90%. It is followed by Lufthansa which is in the red by 1.34%.
Tomorrow, the German ZEW Economic Sentiment report is due for release. It is expected to print at 15.2 for January, higher than the 10.7 reading for December. This indicates that optimism among German investors and analysts have improved. A better-than-expected figure could be bullish for the DAX index because it would reflect optimism for the German economy. On the other hand, a disappointing figure could weigh down the stock index.
On the 4-hour chart of Dax Index CFD, we can see that Germany’s stock index found resistance at its previous highs at 13,558.0. A strong bullish close above today’s highs at 13,540.0 could mean that the DAX Index may be on its way to new record-highs. On the other hand, the index trading below today’s Asian session lows may already mean that there are enough sellers in the market to push prices lower. There is near-term support at last week’s lows at 13,394.0.
However, if support there does not hold, the DAX index could fall all the way down to 13,259. This price coincides to a major rising trend line on the daily time frame and was the high for January 7.More content