Dax index started on the red early n the morning but investors sentiment lifted by news that there is a progress in coronavirus cure. A coronavirus vaccine may be close for testing on animals and then humans. Scientists in the UK said they made a significant breakthrough by reducing a part of the average development time of the coronavirus from “two to three years to just 14 days”. However, while animal testing may start immediately, human testing may not begin until early summer. At the same time the Chinese TV reported that a research team at Zhejiang University had found an effective drug to treat coronavirus infected people.
On the economic data, the Germany Services PMI came in at 54.2 in line with expectations in January. The Germany PMI Composite came in at 51.2 topping forecasts of 51.1. The disappointment came from the European Monetary Union Retail Sales data that came in at -1.6% below the forecasts of -0.9% in December.
Dax index is 1.32% higher at 13456 as the rebound from the monthly lows continues. The Dax index today shows a superior strength as managed to break above the 50-day moving average. Now the bulls are in control of the index.
On the upside, initial resistance for the Dax stands at 13,476 today’s top. More offers above that resistance area might emerge at 13600 the high from January 24th. In the event of a bullish breakout the next target would be the record high at 13648.
On the other side, the immediate support will be me at 13223 the daily low. A close below might open the way for the next critical support at 13135 the low from yesterday’s trading session. More bids might emerge at the 100-day moving average at 12977.